2) Brief Analysis Based on Porter’s Five Forces Based on Dell case study, I will write a brief analysis based on the Five Forces Model by Michael Porter. In the five forces model we have these forces – the threat of substitutes, the entry of new competitors, rivalry among existing firms, the bargaining power of suppliers and the bargaining power of buyers. These factors can be determining the average rate of return for the firm in an industry. Each of Porter’s five forces impacts the average rate of return for the firms in an industry by applying pressure on industry profitability. Well-managed companies try to position their firms in a way that avoids or diminishes these forces – in an attempt to beat the average rate of return for the industry. The first force that I need to highlight is the threat of substitutes which means the price that consumers are willing to pay for a product depends in part on the availability of substitute products. Dell need to make sure that the price offered to the market is affordable based on the quality it was set, so that it can eliminate the price that offered by its competitors and maintained the demand from the customers. The second force is the threat of new competitors or entrants in the market. If the firms in an industry are highly profitable, the industry becomes a magnet to new entrants. So, Dell has to ensure that it can keep the number of entrants low by offering the quality products and the best service to the customers. It can be seen when Dell shifted its sales strategy rather than selling exclusively direct to decide to transition a hybrid model from only targeting to the business to targeting business, consumers and international markets as it sells a portion of its product line through retailers like Best Buy, Staples and Walmart. Besides that, we can do an analysis based on rivalry among existing firms