Microsoft Essay

662 words - 3 pages

Finally, offer guidance for Microsoft regarding what potential strategies the company could use in order to regain its position as the leader of technological innovation in the software industry.
At the moment, Microsoft is using the strategy of being adaptive, instead of being the first to market. They choose to wait and see whether an innovation is being successfully introduced by another company, because this strategy has the advantage of lower development costs, lower risk, and a better sense of what the consumers want. However, since they invest an enormous amount in Research & Development they should be able to foresee what the market wants. Hence they could apply the ‘first ...view middle of the document...

This is called market cannibalization.

Read more: http://www.investopedia.com/terms/m/marketcannibilization.asp#ixzz1dJP9rhTg
His conclusion is that successful companies often fail because of the very management practices that have allowed them to become industry leaders. Those practices make it extremely difficult for them to develop or adopt the disruptive technologies that ultimately steal away their markets. It is a dilemma because companies fail for the same reason they succeeded
1 inventive: first to market instead of adaptive ‘second but best’
address current customer needs and provide quicker returns
switching from a current, sure stream of profits to a future, uncertain stream of profits is risky and is unnatural for managers’ behaviour. Particularly at the front end of the radical innovation cycle, it is difficult to envisage the development path and to have confidence that the chosen path will lead to confidence in an industry (Quinn, 1985).
. Disruptive innovations usually bring a new product that will compete with...

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