This research was conducted in Sidoarjo, namely in the "Kasper" Samiler Crackers business which aimed to determine the innovation strategy and competitive advantage of the Kasper Samiler Crackers. This research was a research that used a qualitative approach. Which used interview and observation instruments. Data collection techniques used were observation, interview, documentation and triangulation techniques. The results showed that the innovations made by Samiler Casper Crackers were innovations in products, processes, organizations, and innovations in marketing strategies, which were in line with Oslo theory. The innovation strategy undertaken by Casper was very supportive in competitive advantage so that the company was able to compete with similar products so as to increase its sales onset.