Managing Innovation in Spotify: Blue Ocean Strategy

Managing Innovation

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Innovation theory...............................................................................................................................3
Application of innovation strategy.....................................................................................................7
Application of innovation theory in future development...................................................................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
Innovation is defined as utilising new combination of practices to entertain similar
operations. Further the innovation is also to create own practices that can generate better
outcomes. This project is based on the evaluation in respect to blue ocean theory of
innovation in Spotify Company. This report will provide a brief overview about the
innovation theory. Different principles associated with the blue ocean innovation theory will
define in this project. What is the implementation process related to such theory will also
clarify in this project. This study will also clarify about how this theory of innovation evolve
with the support of critical assessment in respect to its benefits and limitations. Furthermore,
on the basis of different aspects related to the innovation theory in this report various ways
will also project in regards to the organisation that how it can implement the theory in future
growth and development. For future development application of this theory will be projected.
MAIN BODY
Innovation theory
Blue Ocean was a book published over the innovation practices. This is about to
constantly create new practices or to support new areas that can drive better operational
outcomes. Blue ocean innovation theory focuses over generating innovation with out of the
box kind of mentality (Abdolshah and et.al., 2016). This strategy for innovation implement
only in a certain situations where possibilities for higher profits exist along with no
competition or high competition. All such innovative ideas that can bring heavy returns in
favour of the organisation this strategy implement in regards to all such ideas. This is about to
introduce new features and engaged with new demands in order to cut the market
competition. Blue ocean strategy can be stated as pure innovation strategy as organisation get
to feature something new that never existed and in different direction as compare to its
normal business operations.
Principle of blue ocean innovation theory
Blue ocean innovation theory work on the basis of certain principles that can be
projected in the following points. All these principles are the basis of the theory of
innovation. Tools discussed under this strategy are identified as creating uncontested market
space, making competition irrelevant, creation and capturing of new market in same market

and breaking the value cost trade off. All these tools make the strategy more specific in
regards to channelizes innovation in working practices.
How to create uncontested market space by reconstructing market boundaries
How to create uncontested market space by reconstructing market boundaries is the
first principle behind the blue ocean strategy of innovation. This innovation strategy give
emphasis over establishing a unique space in the target market for organisation that can allow
the organisation taking competitive advantages in market (ALBAYRAK and BEYBUR,
2018). In the blue ocean strategy of innovation companies set to creation of new dimensions
for business and try to set new roles of the organisation. New products are developed along
with the regular business products that can support the organisation in establishing new
heights for business. The ides company implement in this strategy allow the organisation to
again establish a brand value. Innovation should allow the organisation to expand the existing
business scale and this principle guide the company to think about such an idea that scale the
business growth at all new level. Its important to remonstrate market boundaries to have a
successful innovation for the growth of business. Its crucial that due to innovation company
should reach to a new heights in business and cater to much expanded market as compare to
its earlier market reach. Innovation seek huge investment of company’s resources so it
becomes crucial for the organisation to value such investment. If the innovation can not bring
new dimension to business growth or process than it is void to innovate on the basis of this
principle of innovation.
Focus on the big picture
Blue ocean strategy of innovation give emphasis over principle denoted as focus on
the big picture. Its important to give priority to big picture while innovating in the product
and services of organisation. Big picture denote in this principle is the maximum scope of
market that can be covered by company with the support of innovation. Company should not
only focus on achieving the small growth rate or product development feature it must give
emphasis over leading the entire market with the support of innovation. As this strategy of
innovation do not prioritises small changes in product or process with the guidance of
innovation. Blue ocean strategy always reer for big changes and influence development in the
company’s business dimension (Berezkina, 2016). Spotify is a new brand and this strategy of
innovation will boost the company’s growth to all new level. Small changes in the product of
company will not allow the organisation to lead the entire market. Organisation must look for