Lady Gaga Case
1) As Troy Carter the option I would pursue for Lady Gaga is the first one which is of continuing with the arena tour. It does not make any financial sense to cancel the show completely given the fact that they have already incurred sunk cost of $4 million in developing the Fame Kills Tour with Kanye West and this amount cannot be recovered. So the third option is out of the picture. In any business, those who take risks can reap great rewards than those who are afraid to do so. Therefore it’s better to build upon the already laid foundation and proceed with the tours than cancelling because of fear of incurring more loses.
The other option is to go for a smaller theater tour. Usually in the music industry upcoming
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In 2008 her album “The Fame” became a hit and was launched in Canada, Australia and lastly in the US. As of September 2009 The Fame’s album sales amounted to 1,370,000 and 11,262,000 in track sales which is not bad for an upcoming artist who is trying to establish a big name in a competitive market. By late 2009 Gaga became one of the most recognizable names in pop music and she made had an opportunity to perform at the VMAs and she also won three awards which includes video of the year and best new artist. All these live performances, album/single success and social media presence created a huge fan base which made her a successful artist. Gaga’s team can best further develop her touring and recorded music sales by having as many local and global tours and having her music on different distribution mediums like iTunes and mp3. The team must work towards getting her music on the top 10 best selling artist and number one on Billboards charts. Before going for tours, intensive marketing should be done so as to maximize profits and get fans excited about the tour. They must also have viral videos and music uploads on Youtube and engage fans where ever possible for instance inviting one or two fans on stage and involve them in tour costume design among other things. Gaga must be involved in charitable activity so as to get good publicity. Gaga’s team can best leverage her social-media presence by working towards