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Why Do Firms Take New Strategic Directions Such as Mergers?

1) Find an article that describes a firm's new strategic direction such as a merger, strategic alliance, entrance to a new market, or product, etc.

- This is the article I found...
Article name: Microsoft's Push Into Gesture Technology
Website: http://www.heraldtribune.com/article/20101030/ZNYT01/10303002/2055/NEWS?Title=Microsoft-x2019-s-Push-Into-Gesture-Technology

(2) Your goal here is to analyze what is happening and what may be the motivations behind the strategic action.

(3) You should also identify the pros and cons of the action based on what we have learned.

(4) Should be a quick summary, and identify any shifts in the Macro or Micro environment that might be contributing to the strategic action.

Solution Preview

1) Find an article that describes a firm's new strategic direction such as a merger, strategic alliance, entrance to a new market, or product, etc.

- This is the article I found...
Article name: Microsoft's Push Into Gesture Technology
Website: http://www.heraldtribune.com/article/20101030/ZNYT01/10303002/2055/NEWS?Title=Microsoft-x2019-s-Push-Into-Gesture-Technology

(2) Your goal here is to analyze what is happening and what may be the motivations behind the strategic action.

Microsoft purchased gesture recognition software companies because it felt there was a growing demand in the consumer marketplace for this technology. Anticipating a high demand for this technology, even ...

Solution Summary

This solution, in an MS Word document, discusses the motivation behind Microsoft's recent purchase of two gesture technology companies. It also describes the possible pros and cons of these acquisitions and summarizes the scenerio including possible shifts in the macro or micro environment.

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