In order to improve the company’s competitive position, Dell’s management initiated a three-pronged strategy:
Improve the core business by profitably growing the desktop and mobile computer business and enhancing the online experience for customers. This involved cost-savings initiatives and simplifying product offerings.
Shift the portfolio to higher-margin and recurring revenue offerings by expanding the customer solutions business in servers, storage, services, and software. This involved growing organically as well as through acquisitions.
Balance liquidity, profitability, and growth by maintaining a strong balance sheet with sufficient liquidity to respond to the changing industry. This provided the capability to develop and acquire more capabilities in enterprise products and solutions.