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Strategic Innovation

In: Business and Management

Submitted By rcrockett
Words 1430
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Innovation Strategy
A corporation’s innovation strategy is an important factor for viability and success of that organization. “In a discontinuous world, strategy innovation is the key to wealth creation” (Mintzberg, Lampel, Quinn, & Ghoshal, 2003, p. 471). It is a way for new entrants to succeed in the face of adversity and a way for incumbents to reinvent their products for success. This paper evaluates Microsoft Corporation’s innovation strategy as it related to its product and also evaluates the strategy as a measure of the company’s success.

Company background and SEC filings

Founded in 1975, incorporated in 1981 and with an initial public offering in 1986, the Microsoft Corporation mainly focuses on developing software products and services for their customers. There are five divisions of Microsoft: Windows and Windows Live Division, which creates operating systems for PCs; Server and Tools that develops server infrastructure and software; Online Services Division that focuses on easing consumer concerns and simplifying searches with Bing; Microsoft Business Division, which sustains the Microsoft Office Suite; and the Entertainment and Devices Division with products such as the Xbox360 and Kinect. Microsoft operates in more than 100 countries around the world, with sales growth attributed to creative design of new products and services. Their main competitors are Apple, Google, Yahoo, Adobe, Nintendo, IBM, and HP. With that level of competition, Microsoft is thoroughly committed to staying at the top of their business. To do this, they developed a deep passion for research and development that results in exciting new products that keep the world on its toes. In a recent corporate report, Microsoft declared a dividend of 23 cents per share, in which shareholders saw an increase of 15%. This shows Microsoft’s continued growth in the industry since…...

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