Manufacturers attempting to successfully pursue a demand-pull sales model must have the supporting supply chain management capabilities, an efficient order center, and the manufacturing capabilities to support it. Many manufacturer-direct firms have difficulty switchingto the demand-pull model because they lack these necessary ingredients. They have difficulty in using either sales model when they develop an online strategy of selling directly to consumers because they face channel conflict with the physical retailers of their products. Therisk is that the traditional retailers of the manufacturer’s goods will become disadvantaged froma price standpoint as they have to compete directly with the manufacturer. They may also bedisadvantaged in their ability to maintain inventory that is as current as the manufacturer. Theresult can be that these traditional marketing channels are cannibalized by the manufacturer’sefforts to establish a direct relationship with its customers. Unless manufacturers can beassured that the elimination of this marketing channel will not negatively impact sales and revenue, they must proceed with caution in pursuing the manufacturer-direct business model,or they must take the necessary steps to assure the continued existence of their retailing business partners