Innovation within a business is the involvement of evolving new products or sufficiently improving existing technologies, designs, methods and marketing to help the business be more successful and to help solve problems like increasing efficiency, targeting a more variety of customers and consumers to help increase the businesses profits and benefits (Business.gov.au, 2019).
A business model is an organization’s arrangement for making a benefit. It distinguishes the items or services the business will sell, the objective market it has recognized, and the costs it envisions (Chaffey & Ellis-Chadwick, 2019, p. 164).
When it comes to superior innovation you tend to think of business and companies that have really made a great adjustment to make their businesses successful. Today I am going to talk about the superior innovation of Spotify within their business model.
Spotify is an audio streaming platform that provides protected music and podcasts from record labels and media companies. Spotify was founded on 23rd of April 2006, so roughly 13 years ago by Daniel Ek (CEO) and Martin Lorentzon. Its headquarters is in Stockholm Sweden as the company is Swedish formed (Encyclopedia Britannica, 2019).
Through the recent years Spotify has built its brand by first making there streaming service freemium and in doing that since the company has been very successful companies and business have requested and paid Spotify to advertise through there streaming service so that those businesses could get more customer awareness they did this in the freemium mode after every few songs (GrowthHackers, 2019). In this case it was a great way in teaming up to build Spotify’s company and other businesses who needed the awareness.
In 2018, Spotify also launched the ongoing ‘Black History Is Now’ project that includes a new content hub where mainly targeted artists, creatives, and organizations that are working with communities of African American decent can tell their stories through fixed and customised playlists, videos, and podcasts (Alphr, 2019). This was a very big project for project because the business was reaching out to new customers on such a huge topic in the united states of America. This was a great way of innovation in terms seeking more people to listen to Spotify.
Another point in where Spotify was introducing a new induce format of their products was when they hired Troy Carter as the manager of creating services in 2016. He noticed that Spotify at the time needed more of a spark to really start pushing streams to beat competitors such as Apple Music and Tidal, in doing that Troy noticed the lack of New personalised playlists. By Spotify making this a new tool within the streaming service, it reeled in active listeners of music and podcasts. The Discover Weekly playlist tool on Spotify later that year rolled 5 billion songs for over 40 million active listeners which was more listeners than Tidal and Apple music (Koch, 2019).
By endeavouring these newly flourished ideas within the brand development team of Spotify it has led Spotify to have over 100 million active listeners and over 40 million premium pay subscribers (Spotify.com, 2019). This has made Spotify’s brand and company spark and they did this just by introducing new products within the streaming service by coming up with new innovative ideas this made their overall business model very successful as them keeping getting better as time goes on.
References (Spotify)
Alexa.com. (2019). spotify.com Competitive Analysis, Marketing Mix and Traffic – Alexa. [online] Available at: https://www.alexa.com/siteinfo/spotify.com [Accessed 3 Sep. 2019].
Alphr. (2019). Spotify’s new Stations app is all about playlists without any of the faff. [online] Available at: https://www.alphr.com/spotify/1008362/spotify-stations-app-playlists [Accessed 3 Sep. 2019].
Bloomberg.com. (2019). Bloomberg – Are you a robot?. [online] Available at: https://www.bloomberg.com/profile/company/9239029Z:SS?cic_redirect=true [Accessed 3 Sep. 2019].
Business.gov.au. (2019). Innovation. [online] Available at: https://www.business.gov.au/change-and-growth/innovation [Accessed 3 Sep. 2019].
Chaffey, D., & Ellis-Chadwick, F. (2019). Digital Marketing Strategy, Implementation and Practice (7 ed.). (T. Hill, & E. Srebernik, Eds.) New York: Pearson. Retrieved 08 15, 2019
Encyclopedia Britannica. (2019). Daniel Ek | Biography, Spotify, & Facts.
Available at: https://www.britannica.com/biography/Daniel-Ek [Accessed 3 Sep. 2019].
GrowthHackers. (2019). How Spotify Turned Free Music into a $10+ Billion Valuation.
Available at: https://growthhackers.com/growth-studies/spotify [Accessed 3 Sep. 2019].
Koch, R. (2019). The Secret to Spotify’s Success. [online] Entrepreneur. Available at: https://www.entrepreneur.com/article/286778 [Accessed 4 Sep. 2019].
Spotify.com. (2019). Music for everyone.. [online] Available at: https://www.spotify.com/us/about-us/contact/ [Accessed 3 Sep. 2019].
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