While Dell’s problems in 1999 were attributed to shortages and higher prices for some
components, the company has often stated that its long-term relationships with key suppliers
would provide a buffer from such fluctuations. Also, the company argued that its close
electronic integration with customers and suppliers would make its entire value chain more
responsive than those of its competitors. Yet when demand slowed in 2000, Dell was
apparently caught off guard, as was the rest of the PC industry.