Dell relies primarily on an operational excellence customer value proposition focused on direct sales and low inventory levels. This allows Dell to maintain low costs and prices while satisfying customers. However, Dell faces business risks like component shortages and increasing competition that could threaten profitability. Dell addresses some of these risks through control activities discussed in its 10-K like inventory and receivables management. As a manufacturer, Dell incurs direct costs like materials and indirect costs like utilities to produce its products. Its low inventory levels provide a competitive advantage but also mean it operates with a consistently negative cash conversion cycle.