Lady Gaga (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

PROBLEM STATEMENT AND PLAN OF ANALYSIS

The music industry is just like any other business industry in the world. Here also the managers have to face dilemmas as the resources are scarce and the motive is profit maximization as well as the long-term growth. When West act in such a manner at VMA and had to take a break from the music industry and withdraw from the tour that had months of planning on the backhand, this created a serious problem for Gaga and a more serious problem for Carter.

In the summer of 2009, West and Gaga make it public that they would co-perform an arena tour. This tour was to be promoted by Live Nation. West and Gaga scheduled their tour to last around three months and cover cities across North America. While co-performing tour was to bring about a dramatic shift for West as his earlier tour introduced only him on the stage for his complete set.

The staging plans were extremely ambitious: the design called for the stage to extend the entire length of arena. Production was in full swing.

Plans for the Fame Kills tour quickly unraveled in September 2009. Already known for igniting public controversy, West declared at a televised relief concert for Hurricane Katrina Victims that the US President George Bush doesn’t care about black people and stormed at the 2006 MTV Europe Music Awards after he failed to win the Best Video award.

West experienced an extreme public breakdown during the VMAs in September 2009. West had cut-off the teen singer Taylor Swift during her award acceptance speech, grabbing the microphone from her and protesting in support of the singer Beyonce, thereby stunning many music industry insiders and causing dismay among the TV audiences all over the world.

Although he publicly apologized for the incident shortly after, the storm around West did not die down. And a week after the event; West had made a public announcement that he was taking a break from the music industry, citing a number of personal reasons and officially withdrawing from the tour. The schedule for the Fame Kills tour had been released two days after the VMAs and tickets had gone on sale.

Thus, the statement of the problem is regarding what will be the next move of Gaga;

“Whether Lady Gaga should continue solo on the tour or she should cancel the tour as she is inexperienced and a nascent artist.”

The plan of analysis is to conduct a detailed contextual analysis of the situation given in the case. The events before and after the tour are analyzed in the following analysis. There is a qualitative content analysis of the case and the dilemma presented in it. The quantitative data such as the cost implications are also analyzed but to a limited extent. Profits for each alternative are also obtained by formulating income statements using the given data. The alternatives for the solution of the problems are worked out and the feasibility of each alternative is also discussed. On the basis of this discussion, the final decision is presented and recommendations are made.

ANALYSIS & FINDINGS

When Kayne West had made it public that he was going to take a break from the music industry, because of some personal reasons and officially withdrew from the tour, Gaga and her team especially Carter were in big trouble now. The team was now thinking on the alternatives for the planned tour. They were also deliberating on the costs that may be incurred when any one of the sought alternative is undertaken (Refer to figure # 2).

Situation before Kayne West cancelled plan for tour

The preparations for the tour had begun weeks ago. West’s team had already done some work and Gaga’s team will have to reimburse him for most of their start-up expenditures. Gaga had already spent $4 million. Costs of reworking their plans was estimated to be approx $2 million, which would come on the top of the $4 million they had already spent working on the Fame Kills tour. Because the dates for the Fame Kills tour had been announced two days after the VMAs and tickets were being sold out, the course of refunding ticket holders would have to be started if they are going to cancel the tour...........................................

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