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This case is about one of the leading personal computer (PC) manufacturers, Dell Inc. The case discusses Dell's business model and distribution strategy. Dell, which was known for its direct selling model that was backed by strong supply chain management practices, lost its market leadership to HP (Hewlett Packard) in 2006. In the mid- 2000s, some analysts had criticised Dell for sticking to its direct-only business model. According to them, the business model that had made Dell so successful in the past was not as effective as before and the company was losing its competitive edge. In 2007, Dell announced its intention of moving beyond the direct-only model that it had zealously followed until then. Subsequently, the company rolled out its retail as well as channel partner initiatives. Though some analysts welcomed the move, others felt that significant challenges lay ahead for the company.