Spotify is one of the well-known digital music applications along with the podcast and video streaming services which provides access to millions of songs freely from all over the world by signing up an email or by connecting by Facebook or runs on all manner of smartphones, pc’s, tablets which targets millions of fans around the world. It also highlights trust and faith of management behind the services provided to the ultimate customers. It is one of the reliable and easy ways to use application, which everybody needs in this fast running lifestyle. Their greatest feature is offline listening which is the most attracting features by which individuals are mostly attracted (Willings, 2018).
Relation between Creativity and Innovation:
The word innovation and creativity can be almost used exchange ably but are not synonymous to each other. Creativity, basically talks about imaginations, unique ideas and building connections between random and isolated things whereas innovation beliefs in transforming new ideas into an actual world in order to enhance the product and services value. However business success lies on the work done in between innovation and creativity (Urrecha, 2017).
Likewise, if we consider an apple company it is creative as it has a forward-looking capability and has those imaginations to see connections between different things along with this an innovative sense of executing of those ideas in order to generate highly desirable products for value. Therefore, this relationship highlights that company cannot grow, if they omit creativity as their main ingredient. This ensures a proper flow of innovation if a company ensures creativity (Garrahan, 2015).
Importance of Creativity and Innovative approach to Spotify business:
In today’s scenario, success of business lies in the hands of innovation and creativity, which aids companies to look at things from the diverse perspective. Business creativity helps to keep businesses alive, thriving and restructures knowledge, which gains new insights, without this it will hamper the progress and success of the organisation. (Bryant, 2012). As it is always suggested to think out of the box but in concern of innovation and creativity, companies are, applying new sayings do not think out of the box; think like there is no box. Similarly, stimulating creativity, which leads to improvement in productivity of the organisation, faces competitive advantage, which consequently, endeavours success for every business organisation. Along with concern about feedback, which are supported and encouraged by the company (Lee, 2018).
Different categories of innovation:
The modest way to characterize the innovation is into two- incremental and radical which surely improves value for the clients and the business. However, innovations are difficult, costly and risky, but it always remains an essential game to play which helps in surviving in this competitive world.
Incremental Innovations: Incremental innovation focuses on cost or feature improvement made in the existing product category or services given by the organisation, likewise if an optical company uses plastic lenses instead of glass lenses it would be categorized under incremental innovations.
Radical Innovation: Radical innovation focuses on a wholly and entirely new way of doing something to make company gain advantage over the others. Likewise, an entire change by innovating contact lenses or laser eye surgery would be considered as a radical innovation.
Unique localization of strategies is adopted by Spotify to generates its success, as compared to the other technical companies which are based on radical innovation and move quickly into other markets but Spotify handles localization differently hence adopts incremental innovations to inflates success (Slonane.2016).
Evaluation of Spotify in context of Innovation Strategy:
SWOT Analysis
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STRENGTH • Millions of fans around the world, market potential are improved for services. • Guarantees trust and faith in management behind the services. • Most user- friendly digital music services on the market. • Still allowing user to build music library so that they also access their favourite artists. • Offline listening is their greatest features. • They are also providing record labels equity. • Most reliable and easy to use application. |
WEAKNESSESS • Limited artists (especially older ones. • Premium subscriptions for mobile services. • Initially free usage of the application, later limits the consumers to access free music. • The revenue for publisher and artists are not ensured. • High frequency in audio and visual advertising. • They provide 70% of revenue to royalties. • High artist relationships. |
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OPPORTUNITIES • Potential expansion in the remained areas through live concerts, video streams and performances broadcasts. • Rapid growth of technology and change in attitude towards steaming in near future. • Young generation are having smart phones so Spotify can attract more customers. • Can go with the strategic partnership. • Better conversion of free users. |
THREAT Ensures long-term challenges for user preferences. • Establishes competitors like iTunes, new fore ways by Google and amazon. • Lower profits and revenue generation, due to the services attempts to into both contexts – free music, premium subscription. • Company can further face financial issues. • Competitors with the higher skills and experiences. • New markets difficult to enter and monetize. |
Evaluation of Spotify, through SWOT analysis that highlights certain strength likewise, Spotify generates that kind of music, which attracts more and more customers because companies aim is to satisfy their taste. (Dearman, 2016). It is highly accessible as the services are marketed through phones and computers .Pricing factor also plays a major role as low price with the best quality makes customers more lean towards company, it is totally inexpensive (Dearman, 2016). Certain openness to change has highlights a significant growth in the market .
opportunities which comes in the way they are grabbed by the company and soon working on expansion in remained areas through live concerts and performances broadcasts (Cristina, 2018) . If a company has strength so it must include weaknesses and threats likewise Spotify has a large threat of success as the company is more dependent on the subscribers for generating future profits. This indicates the high degree of competition with ITunes, Amazon still Spotify with its strength has a competitive edge over the others and certain concepts of differentiations leads to the current success of the organisation (Bendes, 2018).
Analysis:
Steeple analysis of Spotify highlights socio-cultural, technological, economical, ethical, political, legal and environmental factors, which are based on external factors.
Socio-Culture Factor:
A widely acceptable company, which consider both the aspects of being socially available among different society and culturally created more opportunities by opening new markets. Going online has greater influences over the young adults around 15-25 years who favour online platforms rather than applying the older patterns. Other than this, they are also more attentive in piracy concern. Consequently, Spotify’s social factor emphasis on streaming music rather than downloading.
Technological Factor:
In technical terms, Spotify has a radical turn, which has made many aspects of online music more convenient for music listeners. It is very much essential for Spotify for continuously advancing its technology because people are more advanced in tackling devices and Spotify handles laptops, tablets, PlayStations that will attract a wider audience and platform for customers and highlights the popularity of the smartphone over a short period.
Economic factor:
In economic concern, Spotify has a competitive pricing structure in comparison to their competitors. They do not alter prices in comparative to their competitor, which averts them from incrementing their revenue. New rivalry within the market are giving prices that are more competitive for the customers, therefore Spotify has generated an exceptional selling point for their product to beat the competitors pricing.
Environmental Factor:
Awareness for customers who spread over Spotify services is to be socially and environmentally responsible. Consequently It’s companies responsibility to be aware about the societal concern , with the minor change in the company will have greater effect over the society so what so ever changes are adopted by the company , minor or major are to be changed by keeping in mind the concern about the society and the environment in which they stays.
Political Factor:
In political concern, it always highlights the pressure from the government and the higher authorities, associated bodies; it considers the financial laws, political stability, employment aspects, wage legislation, compliance of safety and pricing regulations. It also highlights the rules and the restrictions for the company in concern of advertising and marketing which may affect the company reputation.
Legal Factor:
Due to some legal factors Spotify was not available in Canada and also having illegal downloads were continued to grow despite of many actions were taken into a considerations across the industry. Due to the lack of legislation, heavy downloaders were encouraged to continue to share files against the authorities.
Ethical Factor:
Spotify’s code of conduct and ethics are based on certain policies and values likewise they belief in doing right things, always act with honesty, reliability, they always keeps the moral and ethical standards high respect, dignity and courteous n relationships which are carried within the organisation.so overall they are innovative, collaborative, sincere, passionate and playful.
Theoretical Model:
The Amusement park theoretical model of creativity is the first and the foremost creativity theory, which successfully fills the gap between the contrasting views of the creativity. There main motive is to explore creativity by using metaphors. It includes four main stages: Initial requirements, general thematic areas, domains and micro- domains .Initial requirements are very general, and each subsequent part gets more and more domain- specific. Whereas The Amusement park theoretical models states that, it can provide a most powerful framework for creativity assessment, selection of students and development of creativity training programs (Doorneweert, 2015).
Creative Strategy Process
Vision and Strategy
The creative process starts with the vision and the strategy considered by the company through the collaborative marketing audit. This enables the company for the best strategy to be adopted for gaining bottom line profits along with this aspect company also discover the variables, which affects the business environment. Its main motive is to get the raw data and so that the company immerse itself with the problem. (Sukernik, 2015).
The Brief
Briefing highlights the key finding and the learning so that the company can focus on creative process. Therefore, it acts as a solid foundation for the identifiable deliverables, which are used for meeting organisation’s objectives, visions and strategies. This process wants to take down all the requirements, work over it by wrestling with the mind for the development purpose.
Brain-Storming
The third step elaborates about the core ingredients for idea generation sessions, by exploring the various factors, which majorly affects the marketplace, are considered in such a way that it ensures success in near future. The companies’ professionals are perfectly poised for achieving success by turning the fetched information to the subconscious to do a particular task.
Creativity
In this context, it is that approach which provides the best possible solutions to the organisation it guides in selecting the best design ideas with the help of prototypes, samples and visuals, which provides the deep insights about the strategies, which differentiates the organisation from the market place. It helps the organisation to design something new and maintain its competitive edge over the others (Levy, 2018).
Implementation
At this stage the creative ideas are converted into actual implementation which includes transferring of the selected design to the production department and thus communicating it to various digital platforms to promote the product and thus creating brand awareness through television, radio and the other digital platforms.
Evaluation
Last and the most essential step of creative process is to review and evaluate the results thus evaluation measures the market reactions and keep a check on the market place changes and customer habit , in basic terms it helps to identify the key points that are lacking in the organisation along with this concentrating on growth aspect . Consequently, quality management process reviews the results in order to generate the maximum profits out of the set plans (Cristina, 2018).
Dark side of Complexity while Implementing Creativity of Spotify:
Creativity often highlights the once ideas and solutions, which is one of the valuable characters of the person and organisation. Such character aims at more profitability, long- term sustainability and a competitive advantage over the others. Although some researchers have found the dark side of creativity by viewing results which are damaging and are unpleasant to individuals , groups or society at large and it’s not always necessary that creativity do produce positive results (Anthony,2012) . Poor impulse control is one of the traits which can be seen in individual, highlights the complexity in implementing creativity. In recent research dishonesty has emerged which distort reality of creativity. It is the saddest truth that without creativity, we and people around our self will be living in dark ages but reality states that creativity is both taxing and complicated (Premuzic, 2015).
Problems of innovation into existing business culture/ structure:
Innovation provides creative insight through which business can see things in different perspective but doing something new, which is untested, unproven makes work a bit risky. In earlier scenario the biggest risk of the businesses houses was not being innovative, without being innovative it makes the business less competent, there will be a heavy loss of productivity and also losing the market share. Other than this many older techniques and technologies are left behind and new innovations made to business become more challenging to employee which is working in organisation over years.
They not only face challenges but by innovation many rituals are to affected, being compatible are the biggest task for people because of the change in their lifestyles. Major change in thinking process towards working is the biggest drawback to organisation as well as to the person who is not at all adaptive towards innovation. Overall effect of innovation is mandatory for organisation but also have a major risk which completely upside down affects the working of organisation (Gilliland, 2018).
Importance of Creativity within Workplace that has failed to Innovate:
As earlier mentioned creativity and innovation, goes hand in hand. Without the creative ideas one cannot innovate something old into new. Consequently, business does have creativity but can fail due to the failure in innovation. Many start up fails due to inadequate marketing tests; this arises due to inadequate research, which is very crucial for business. Companies are too much in debt and are running out of cash can be biggest reason to the failure because there is no proper sense of innovation in the business.
The another reason may be team incompatibility, in which employees are new to innovation strategies which make feel reluctant to adopt new methods in organisation and become a reason for failure of innovation as well as organisation. But creativity has certain importance which is reflected within workplace (Burrus, 2017).
Development of creative culture which comes up with innovation solutions to organisation problems however by cultivating and a proper usage of creative abilities lead to more prosperous condition of the organisation. The benefits fetched out of creativity is countless, it highlights Increments in staff morale , more of interactions, increased motivation , increment in team bonding and collaborations which on final aspect affects the business productivity and profitability along with in increment in reputation among the competitors and their ultimate consumers.
Certain fostering examples to make employee feel motivated are like organisation should focus on creative environment and set a fortnight brainstorming meetings to work over a problem. Creativity is that aspect which unfolds the unexplored paths, and generates curiosity to learn and adapt something new. This inquisitiveness about continuous learning encourages mindset towards creative thinking and consequently increases innovation and also there is an increment in retaining quality, more committed employees and more engaging workplace (Bryant, 2012).
Findings
Creativity strategy and improvements:
Based on finding, Spotify have certain creative strategy, which are continued until date and carries a spotlight by being successful with these strategies. (Burrus, 2017).
Consequently Spotify mission is to focus on offering accessing information, opportunities, improving standards of living by changing now and for future generation and also concentrating on sustainable development (Plano, 2018).
Conclusion
From the overall discussion, Spotify will ensure their continued success in a changing environment because right from their free services to attract the customers at large strategy will lead to fetch more and more customers in future, as this strategy will influence the mind of the customer for usage. Their mission is to crack potential of human creativity by providing opportunities to million creative artists to live off their art and along with this thinking and giving opportunity to billions of fans to enjoy and be inspired by it.
However, in near future it will be bit challenging for Spotify because now people are shifting to iTunes and YouTube’s as the user mostly uses YouTube and now this application has already launched its own music stream subscription services. This proves that they are not alone and their competitors are not beginners. Till date the best feature which Spotify carries with itself is “not losing focus” since Spotify has started they tried million features to acknowledge itself among larger audience, Young generation are having smart phones so Spotify can attract more customers. They can also opt for strategic partnerships. Now they should try Potential expansion in the remained areas through live concerts, video streams and performances broadcasts, which lead the current success.
References
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Bendes, K. (2018) How to execute a successful innovation strategy [online] Available from: https://www.forbes.com/sites/forbescommunicationscouncil/2018/02/16/how-to-execute-a-successful-innovation-strategy/#260b4707353c [Accessed 27/10/18]
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