Spotify: Creativity and Innovation Models, Strategies, Analysis

This report provides a comprehensive analysis of Spotify's creativity and innovation strategies. It begins with an introduction to Spotify and its services, followed by a discussion of the relationship between creativity and innovation. The report then explores the importance of a creative and innovative approach to Spotify's business, including different categories of innovation like incremental and radical innovations, with examples of Spotify's strategies. A detailed SWOT and STEEPLE analysis of Spotify is presented, evaluating its strengths, weaknesses, opportunities, and threats, as well as socio-cultural, technological, economic, ethical, political, legal, and environmental factors. The report also delves into the theoretical models of creativity, specifically the Amusement Park model, and outlines the creative strategy process. It addresses the challenges of implementing creativity and innovation within a business culture, highlighting problems and the importance of creativity in the workplace. The report concludes with findings, a discussion of creativity strategy improvements, and overall conclusions, supported by relevant references.

SPOTIFY: CREATIVITY AND INNOVATION 0
CREATIVITY AND
INNOVATION
SPOTIFY-MODELS, STRATEGIES, IMPORTANCE AND RECOMMENDATIONS
STUDENT NAME
10/27/2018

SPOTIFY: CREATIVITY AND INNOVATION 1
Contents
Introduction................................................................................................................................2
Relation between Creativity and Innovation:.............................................................................2
Importance of Creativity and Innovative approach to business:................................................2
Different categories of innovation:............................................................................................3
Incremental Innovations.............................................................................................................3
Radical Innovation.....................................................................................................................3
Evaluation of Spotify in context of Innovation Strategy:..........................................................4
SWOT Analysis:........................................................................................................................4
STEEPLE Analysis:...................................................................................................................5
Theoretical Model:.....................................................................................................................7
Creative Strategy Process:..........................................................................................................7
Dark side of Complexity while Implementing Creativity..........................................................9
Problems of innovation into existing business culture/ structure:.............................................9
Importance of Creativity within Workplace that has failed to Innovate:.................................10
Findings....................................................................................................................................10
Creativity strategy and improvements:....................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

SPOTIFY: CREATIVITY AND INNOVATION 2
Introduction
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.

SPOTIFY: CREATIVITY AND INNOVATION 3
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).
 Formal incremental innovations lead by Spotify, as its mission is global vision,
company wants people from every country in the world can exchange music with
each other.
 Its latest innovation to make sharing of playlists, songs for attracting larger audience.
 A newly added feature known as Spotify codes, scanning a code-using camera can
brings a user to the specific Spotify page.
 The next step is a digital music innovation (Dredge, 2014).

SPOTIFY: CREATIVITY AND INNOVATION 4
Evaluation of Spotify in context of Innovation Strategy:
SWOT Analysis:
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.
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.

SPOTIFY: CREATIVITY AND INNOVATION 5
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).
STEEPLE 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:

SPOTIFY: CREATIVITY AND INNOVATION 6
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.

SPOTIFY: CREATIVITY AND INNOVATION 7
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
VISION AND STRATEGY
THE BRIEF
BRAINSTORMING
CREATIVITY
IMPLEMENTATION
EVALUATION

SPOTIFY: CREATIVITY AND INNOVATION 8
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

SPOTIFY: CREATIVITY AND INNOVATION 9
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).

SPOTIFY: CREATIVITY AND INNOVATION 10
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).
 First strategy adopted by Spotify was developing and adjusting its freemium model
and services from phones. Earlier to attract people at large its strategy was to provide

SPOTIFY: CREATIVITY AND INNOVATION 11
free music by signing up through email or by connecting to Facebook but now the
new mantra is “The more you play, the more you pay”. This philosophy states that
Spotify is emphasising on refining experiences of free users (Bendes, K 2018).
 Universal integration is the second underline strategy adopted by Spotify in which
their main motive to is target the large audience and now the increment is by forming
deals with the car manufacturers and also having a multiyear partnership commitment
with Samsung.
 Till date Spotify was grounded in radio but now streaming music and podcast is the
next frontier which is going to be targeted and are targeted.
 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.
 Formal incremental innovations lead by Spotify, as its mission is global vision,
company wants people from every country in the world can exchange music with
each other.
 Its latest innovation to make sharing of playlists, songs for attracting larger audience,
it is the best tool to build their fan base.
 The next step is a digital music innovation.
 Spotify attracted the technology- loving early adopters as it is easy to share because
each song has its own URL.
 Merging with the companies like Starbucks and the applications like Facebook
messenger was its brand strategy so that every person, who visits coffee shop or using
any social media, should know Spotify easily.
 There next creative strategy was campaign “thanks 2016, its been weird” in which
customisation was their central focus where freedom of mixing up the playlists by
users was the creative thing that was being observed.
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