Friday, 3 October 2014

Lady Gaga Case Study

Case Background and Introduction
Gone are the days when an artist could solely thrive on his/her artistic prowess to win the hearts of the audiences. Modern artists have to go the extra mile in addition to their artistic abilities to reach out to potential fans and appreciators. This paper focuses on analysing the role of strategic management in kick starting the career of an artist, in the age of ever changing technology and ever growing clutter of choices available to people.
We will consider the case of musician, Lady Gaga for the purpose of this paper; and try to trace key events in the artist’s life and study probable outcomes of alternatives available at that particular juncture in Gaga’s career.
The event of choice here took place in 2009, when Lady Gaga was gearing up for a multi month tour with rapper Kanye West. The tour was a big ticket event and a first of its kind in Gaga’s musical journey. The artist aimed at jump starting her career with such an event by associating with a popular name as Kanye West thus, assuring returns and getting leverage for her promotional efforts by banking on the image of someone already popular.
Problem struck Gaga camp when West withdrew from participating in the tour, a month short of the release due date for the event. And although Lady Gaga and her manager Tony Carter were aware of the unprofessional behaviour sported by West at events such as MTV music awards, they could do little in winning West back to favour.
 Tony Carter and other associates of Lady Gaga team such as, Steve Berman (Vice Chairman of Interscope Geffen A&M), Arthur Fogel (CEO of Live Nation’s Global Touring), William Morris (of Endeavor), producer Vincent Herbert, organisations such as L.A. Reid (Lady Gaga’s record producer), Atom Factory, Live Nation and Coalition Media, came together to mitigate a solution to the sudden problem. The problem was of choice that is, choosing the best possible alternative in the situation, as a damage control (loss minimising) measure, which least sacrifices the artist’s potential for stardom.

Situation Analysis

In September, 2009 the problem facing team Lady Gaga, had only three obvious alternative solutions;

1.     Flat out cancellation of the event

This was the simplest alternative available to Tony Carter. Cancelling any performances would kill the prospects of any losses that were to be made on the failure of a multimillion tour. However, this would have also meant quitting chances of any probable profit. Also, cancelling shows and not performing isn’t healthy for an artist’s career; an artist must continually strive to reach out to newer audiences.

2.     Resizing to smaller venues

Lady Gaga had already been performing in night clubs and for smaller audiences; it was more in her comfort zone and the risk appetite required for such performances is low. For a team if it has, lower risk propensity, it suited well to scale down the event to smaller venues for solo performances by the artist.

3.     Giving ‘it’ a shot

The last and the most risky option available with team Lady Gaga was to let Lady Gaga perform solo on the big ticket arena tour. This would have been a first for the singer, and had high chances of making her the star she yearned to be. Also, if the event failed, it could bring along multimillion losses and a tarnished brand image.
Making a choice from the three alternatives available required a structured and detailed analysis of the situation to make the best decision. In the following section we will undertake a brief SWOT analysis to best determine the factors influencing the situation and how it could lead to the best possible alternative.

Strength

The pop star’s strength lies in three core areas:

1.      Musical connect

With three chart topping numbers in her first album ‘The Fame’, Gaga had easily developed connect with her audience. Moreover her musical prowess was established by her winning various prestigious awards in the music fraternity.

2.      Fashion Statement

Lady Gaga created a buzz around her image in the media and among the audiences, with her outré fashion sense. Her dressing up in a dress made of red meat earned her the title of top fashion statement of 2010 (TIME magazine).

3.      Professional backing

Lady Gaga is backed by producer such as Vincent Herbert and record labels such as streamline records. Good professional backing has ensured a sound music career and promotion for the artist.

Weakness

There were two points of weakness manifest in team Gaga:

1.      Lack of experience

Gaga had just started making her mark on the musical scene. It had only been a year for Lady Gaga performing at night clubs and for private audiences; and opening tour for reunion of band ‘New kids on the block’. She lacked exposure to big crowds as against lot of establish stars.

2.      Still evolving fan base

As lady Gaga was very new to the music scene, her fan base was still developing. There was no surety in terms of estimated of numbers, of how many people would turn up for the scheduled event.

Opportunities

Lady Gaga has done a commendable job at creating an opportunity for her brand, herself.

1.      Social media

Gaga is among the few celebrities who have been articulate to use the social media to their advantage. Gaga personally manages her facebook and twitter accounts to develop a personal connect with her fans.

2.      Digital team

Lady Gaga employs a special digital team to maintain a repository of her online feeds and to synchronise promotional, publicity and outreach efforts across all digital platforms. Efforts to arrange interviews by media bloggers, videos on Youtube, Cross linking and cross promotion are some of the remarkable achievements of the digital team, in building brand Lady Gaga.

Threats

Threats to the singer come from two corners (and these threats are common to the entire music industry):

1.      Other artists

The rise of new pop artists and the popularity of already established ones have the prospect of eating into the fan base of Lady Gaga. The team needs to stay ahead both in music quality and promotion to fight against such a threat.

2.      Dynamic Technology

Technology in the past decade has evolved faster than the speed of thought and developing still faster than ever. This has however, adversely affected the artists in the music industry. Ever changing technology has left less means to the artists to earn. Music listeners these days directly download a song from the internet (for free), eating into the artists commission (which would otherwise come had the listener bought a CD or a cassette).

Recommendation

A study of the strengths of the brand, its weakness, opportunities available and the threats facing the singer have given a clearer picture of the situation enabling a sound decision making process.
In my view, Tony Carter should advise Lady Gaga to perform solo at the multimillion tour about to kick off in a month. Reason being:
1.       Lady Gaga’s musical prowess is already established among her fans and music fraternity. She has even won quite many prestigious awards giving further proof of the same. 
2.       Lady Gaga has been able to develop a personal connect with the audience through her music and her unusual fashion sense. She has been able to attract ever growing number of fans due to her eccentric attitude.
3.       This opportunity can be a once in a lifetime opportunity to make it big. Sitting and doing nothing is not going to do any good to her career; and in the past the team has seen negligible revenues and futility of small scale events.

In my opinion Lady Gaga has all the prospects of becoming a star. She is backed by ability, attitude and sound business principles; therefore, she should take a chance to take a big leap, the risk is calculated and she has good chances of making the event a total sold out!

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