Spotify it's audio streaming add media service provider in Sweden that Daniel Ek founded in 2006. This organization has grown and expanded significantly over the past few years with over 300 million monthly active users. Analysis of this organization reveals that its expansion and growth has been attributed to its leadership strategies and the Organization structure and culture. Spotify is available in America and most European countries, and more than 40 countries in Africa (Anonymous, 2021). The current projection of this country is to operate in 170 countries across the world by the end of 2021. Spotify services are available on many devices, including Android, Mac OS, Windows, and Linux computers. These accessibility and diversification have also increased the number of users, which has subsequently increased revenue for the organization. This paper will focus on the organization's culture and structure, emphasizing hiring and recruitment, among other significant details.
Organization Culture
There are several dimensions of organizational culture with particular emphasis on the seven primary dimensions. Organizational culture plays a central role in the success or failure of any organization. Every organization has its unique culture; however, studies indicated that their types of culture fall under several cultural categories, which is also the case with Spotify (Anonymous, 2021). These dimensions include
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Detailed Oriented
Organizations that have a detailed-oriented culture place more emphasis on meticulous attention to detail. This organization culture emphasizes customer-oriented services which are based on the divergent and trending needs of the consumers. In this sense, the employees are expected to have a significantly high degree of exhibiting analysis precision and attention to detail (Anonymous, 2021). According to these organizations' cultures, their customers are the center of any operation, and therefore employees are expected to meet their set goals and objectives within the time allocated (Wendt, 2019). The employees are also encouraged to ensure that the tasks completed and any problems they attain in their duties are met.
Innovative
This dimension in culture is one of the best strategies for the growth and expansion of the Spotify organization. Innovative entails coming up with new ideas to meet the divergent needs of consumers, which are also dynamic (Anonymous, 2021). In this case, organizations ensure that employees have enough time and resources to work on their projects with the support of the management. This is the case with Spotify, as the company's operations are based on innovation to meet the dynamic needs of consumers in their entertainment industry (Wendt, 2019). Spotify has leveraged technology, particularly at visual intelligence, in their predictive recommendation engine that helps customize their consumers' playlist such as “release radar” and “discovery weekly." This success in innovations has been attributed to attracting new talent and providing sufficient resources for innovation.
Aggressive
Aggressiveness relates to competition in the organization among employees in an organization. Some organizations emphasized the cooperation between employees for collective goals, aggressiveness and tails competition to challenge the employees and improve their productivity and effectiveness through healthy competition (Anonymous, 2021). An organization like Spotify faces different challenges every day and comes up with different solutions for these problems (Wendt, 2019). The management encourages aggressiveness through a reward system that recognizes employees who have shown exemplary Performances.
Outcome-Oriented
This entails the focus of the management on the results and outcomes of their employees as opposed to the processes and techniques used to achieve these outcomes (Anonymous, 2021). In this case, Spotify Emphasizes the implications of employee the employee’s role through regular evaluation of their performance. The company has diverse training and development strategies, including coaching to improve the performance of the employees and increase effectiveness (Wendt, 2019).
Stable
In a stable organization, the employees understand the hierarchy and structure of the management and leadership and the expectations. Spotify, therefore as a well-defined hierarchy and departments with there was responsibilities, thereby defining stability for the employees.
People-Oriented
People-oriented organizations entail managers that are invested in the welfare of employees. In such organizations, the culture facilitates equality, individual rights, the dignity of employees, and fairness. In this case, the management ensures that employees work in a safe and healthy environment to increase their performance Through motivation. Spotify is one of the organizations that has successfully implemented a people-oriented culture that and she was all the employees are fairly treated and given equal opportunity for growth in their career (Wendt, 2019).
Team Oriented
These types of companies nature the ability of employees to work together as a team through pairing them and assigning specific tasks for different groups of people based on their skills and experiences (Anonymous, 2021). This is the case with Spotify, as the organization has grown over the past few years to become the leading organization in music streaming services (Wendt, 2019).
Competitive Advantage
The organizational culture of Spotify is one of its biggest competitive advantage over other organizations. This organization has emphasized the importance of innovation and customer-oriented services in light of current information and communication technology trends. Currently, the organization has a significant customer base of over 350 million listeners. I figure that is expected to rise due to the significant and constant innovations in the field to increase the ease in his ability of music to consumers (Anonymous, 2021). The organization has used the algorithmically generated playlist to grow the listeners' data by engaging with the employees. This aspect accounts for 17% of its listening on the platform. This company has managed to maximize the needs of its consumers, particularly the current interests in music, through utilizing technology and the same underlying data and use a unique insight into the artists and record labels (Wendt, 2019).
Scale is yet another competitive advantage enjoyed by Spotify compared to its competitions such as apple, Amazon, 8tracks, SoundCloud, Napster, TuneIn, and TIDAL. Studies indicate that Spotify has the highest number of subscribers and listeners compared to its competitor. This significant fan base ensures that the revenue of the organization and its operations keep growing. Currently, the company has 130 million subscribers and 286 million active listeners (Anonymous, 2021). The streaming industry is projected to keep growing, an aspect that increases the growth and expansions of Spotify. Spotify technology essay has implemented a generic strategy and business model that encourages intensive growth and independently supports multinational expansion. The study indicates that the company has successfully integrated a business model with a revenue model for music consumers and creators (Wendt, 2019). In this respect, the company's intense strategies and generic competition align with its business models, which has increased its expansion and growth to the international market.
The market for music products has significantly increased over the past two decades, and Spotify has maximized this demand to increase its operation in the international market. The organizational design of Spotify has also been facilitated through generic competitive strategies and as a business model (Anonymous, 2021). the Models define the operation of the music industry in the sense that spot fails corporate culture has been developed based on the definition and requirements of the business model and the intensive growth strategy as explained above (Wendt, 2019). Spotify also has three main types of playlists, an aspect that has enabled the organization to distinguish its music streaming services from other organizations in the same industry. This company has also managed to leverage technology and implement Internet marketing for its music products. Like any other organization, Internet marketing reaches the highest number of people, and Spotify has diversified its marketing strategies to include both the media and social media (Wendt, 2019). This strategy has significantly increased the number of subscribers and music listeners, an aspect that has subsequently increased revenues for the organization and its ability to expand.
Organizational Structure
An important characteristic of the corporate structure in Spotify is the integration and sharing of knowledge among the members and organizations. The employees in the organization are divided into groups referred to as squads which are further subdivided into groups called tribes (Wendt, 2019). This structure supports the approach of the management to emphasize the importance of every employee in the organization. The human resource operational managers and other leaders in the organization employ strategies that show the workers help valuable their contribution is an aspect that significantly motivates them. Spotify technology S.A has an organizational structure that is aligned with transactional business needs with the music consumers and their artists (Wendt, 2019). The end firm organizational structure adopted by this organization is facilitated by implementing key principles of integrating and sharing knowledge extensively.
The principle of sharing and integrating knowledge Is based on the plan to grow the business at a global scale by making the workforce of the company more flexible to support agility and the ability to handle all the new challenges for global expansion (Anonymous, 2021). The operations of this company are significant to consumers in the marketplace by allowing the customers to access digital content, including music, via a platform that is similar to a network. This organization requires flexibility in its structure to grow, which was considered during the development of its current structure. The development of Spotify's organizational structure is facilitated through generic competitive strategies, its business model, and intense growth strategies (Wendt, 2019). The human resource department also provides effective communication channels that support the coordination of efforts among different departments and among the employees.
Conclusion
Conclusion converted with the dust that Spotify is one of the leading audio streaming and media service providers across the world. The success of this organization has been attributed to its organizational structure and culture, which support innovation sharing and integration of knowledge and development of its employees. Several organizational cultures are exhibited by Spotify, including detail-oriented, which emphasizes meticulous attention to detail, the innovation that promotes the ability of employees to come up with new ideas. Other dimensions of organizational culture exhibited by Spotify are aggressiveness, which emphasizes the organization's management for the employees to compete in a healthy environment. The organization has also implemented outcome-oriented strategies as part of its culture, which subsequently focuses on the performance of the employees are supposed to the strategies to achieve these outcomes. In stable culture, the hierarchy of the management structure is clear to ensure that employees understand expectations. People-oriented culture is also exhibited in Spotify sense that managers are concerned about the welfare of the employees and therefore ensure equality, dignity, and rights of the individual workers. Team-oriented culture supports the collaboration between employees through teamwork. The primary competitive advantage of this organization is significant listener's data. The company has over 130 million subscribers and over 200 million listeners, an aspect that has facilitated its rapid growth and expansion to the international market. The organizational structure of this company is N-form that which is based on principles such as integrating and sharing knowledge throughout the music streaming operations.
References
Anonymous (2021). Organizational Culture | Principles of Management , 13.
Anonymous (2021). The Purpose of Organization | Principles of Management , 1-11.
Anonymous (2021). Common Organizational Structures | Principles of Management , 1-15.
Anonymous (2021). Key Dimensions of Organizational Culture | Principles of Management, 1-7.
Wendt, F. (Director). (2019). Spotify Model & Culture - a true story? [Motion Picture]. Retrieved from: https://www.youtube.com/watch?v=ar4lq1l8pAc
