Dell Organization Environmental Analysis Industrial Environment Competitive Rivalry Dell's competitors are as follows: Hewlett-Packard, IBM, and Sun Microsystems (Hoovers). HP and IBM pose the biggest threat in the competition. Dell's sales overview has increased every year except for the period from 2001 to 2004. In 2001 annual sales in millions were $31,888 and a notable increase in sales in 2004 to $41,444.0. (Hoovers). In terms of barriers to entry, Dell's direct-to-consumer sales approach has increased sales every year and will soon be among its top competitors. Thanks to this approach, Dell has entered this highly competitive market in a unique way. The biggest barrier to entry Dell faces when entering the technology industry is for customers to gain the company's trust over more well-known veteran computer companies. However, many competing companies use a range of different suppliers. Competitor Sun Microsystems' annual sales are lower than Dell's. They offer an online service where customers can order servers and personal computers. They differ from other organizations because they do not use the Microsoft operating system, which is a weak point compared to the others. Sun does not see Dell as a major competitor, instead of Dell of course; they see Microsoft as a major competitor along with Hewlett-Packard and IBM. Having said that, Dell is doing in the right direction and sales are increasing significantly over time as mentioned above and competition exists between companies which makes Dell unique. The increase in sales between 2001 and 2004 demonstrates the success of the organization. Operating Environment Consumers see Dell as a quality brand at a good price. Some consumers find Dell's competitors to be a little more expensive but still offer a brand of quality. The company plans to launch a sales campaign - "Dell on Ice" - that will offer 15% discounts on its Blade Center system and its top x440. terminate the Intel server. (Shankland). Dell ranks high among customers because it offers free technical support if needed. The purchasing process has changed for consumers with Dell because all orders are placed online, which provides convenience to its customers and minimizes inventory. The flow of materials from suppliers to Dell begins with the company sending orders to factories based on two categories. . These two categories are product type and geography.