Application of Innovation Theories in Spotify's Historical Development

Report
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Effectiveness of innovation theories............................................................................................3
Application of innovation theory in historical development.......................................................7
APPLICATION OF THEORY......................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Innovation is creating a knew value or presenting the product with the additional features is
known as innovation. innovation and invention Totally different from each other. invention is
anything that is developed for the first time and new for the people while innovation is edition of
the value our improvement in the existing product which shows what are different from each
other. it is necessary for the companies to come up with the innovation or development so they
can take competitive advantages.
This report will cover the case study of Spotify Which is an Swedish audio streaming and media
service provider. The application of this party wife was launched in year 2008 and this platform
is owned by the Spotify AB. This platform Offers the various facilities like digital Copyright
restricted recorded music and broadcasting on it. This platform includes more than 60 millions of
songs from the labels and media companies.
This report will Discuss about Theories of the innovation including their benefits and limitations.
It will Provide the brief discussion of the company and discuss about And historical
development of the Spotify company including the product and services provided by them how
this chosen theory can be helpful for the development of the company.
MAIN BODY
Effectiveness of innovation theories
Innovation is emerging as new tactic or way of growth and expansion for companies. It has
to provide platform to develop new product and service. Besides that, there are various types of
innovation theories which can be applied by companies in doing innovation. The use of theory
help in providing framework for innovation. Similarly, Spotify also applied theory of innovation
in product development (Serdyukov, 2017). In regards to Spotify it can be said that it is
Swedish audio streaming and media service provider. It is mainly available in most of Europe,
Americas, Oceania and on other modern devices. But there are several music apps that are also
providing unique features of music and other services to customers that are increasing
competition for companies including Spotify. For being in the competition, it is important for
this company to make features unique and innovate it. For better innovation, it can make use of
effective innovation strategies such as: (Kahn,., 2018)
Diffusion of innovation: It is one of the oldest and effective innovation theory that explains that
how and when something like products and an idea gains popularity/momentum and when it
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diffuses via a social system. So, it is found from research and analyzing that people adopt new
ideas and behaviors and these changes happen with time. Changes in ideas and behaviors put
pressure on companies to make changes in their products and services. But this strategy makes
companies able to use and make products innovative in a manner that can be diffused in easier
manner whenever company wants to change according to needs of it (Diffusion of Innovation
Theory, 2019). Some strategies under this innovation theory can be used for appealing people to
adapt such as:
Innovators: It refers people that are more likely to try innovation and interested in new ideas.
These people also do not hesitate in adapting and making changes and do not have fear of losing
and hence, develop new ideas.
Early adopters: These people represent opinion leaders and embrace changes opportunities
because they know the reason and effectiveness of making changes. They are comfortable in
adapting change (Scott and McGuire, 2017). So, by identifying such people, company can make
its innovation successful as they do not require convincing them much.
Early majority: These people are rarely leaders but can adopt innovation before the average
person. They want some prove and evidence that can make them sure that made changes and
innovations are effective and can satisfy their needs. So, it is important for company to provide
information to such people and convince them about adapting changes and making use of
products.
Late majority: These are people who only adopt changes when they listen about success of
changes and innovation and when many people use them in an effective manner. So, for
appealing such people, company requires providing success story and reviews of existing
customers as proof (Syahadiyanti and Subriadi, 2018).
Laggards: These people are very conservative and are less likely to adapt changes because of
fear of failure and dissatisfaction. There are some strategies that can be used by company for
appealing such group of people such as: statistics of success, fear appeals etc.
Advantages
 One of the main advantage of using this theory of innovation is scope or the degree to
which company can see innovation in better way than idea and product itself.
 It is consistent with values, experiences and needs of potential adopters.
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