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The operating environment is made up of competitors, customers, labor, and suppliers.
Industry Environment
Entry Barriers
New entrants to a market can threaten the market share of competitors already in the market. New entrants are interested in entering the Chinese market to try to gain a large market share from existing competitors in the market. By using the direct model strategy, Dell is using a different approach to woo the Chinese consumers. Dell's Just-In-Time (J-I-T) inventory keeps inventory costs to a minimum. Companies like China's market leader Legend (local Chinese PC), Lenova , recently purchased IBM Hardware Business outside China , they are beginning to move to Dell's J-I-T model, selling direct to their corporate customers...
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