Lady Gaga and Bezo’s Case Completely augment customers
Lady Gaga’s Strategy: Her persona itself “Lady 1. Designing the website to make
Gaga” customers’ shopping experience quick,
easy and interesting
Competitive Advantage: She was able to touch
2. Allowing customers to review and rate
different cultures and subcultures through her
books
music, values, beliefs, attitude, etc.
3. Offering personalized book
She is recognized as a social statement of non- recommendations
comformity. 4. Constantly seeking new opportunities
to surprise and delight customers
First build market presence then monetize that
presence. Offer customers the cheapest deals possible
1. Builds market presence through a range Price cutting
of online channels
Free delivery
a. Social media
b. Website Amazon’s Mission: To be earth’s most
c. Concerts customer-centric company, where customers
d. Merchandising deals, can find and discover anything they might want
endorsements, product to buy online and that endeavours to offer its
placements customers the lowest possible prices, was to be
2. Building relations with her fans achieved primarily through information
a. “Little Monsters” technology.
b. “Haus of Gaga”
c. Monster Claw greeting
Bezo’s Strategy: Growth
Bezo’s Vision: The potential to use the internet
as an intermediary between manufacturers and
customers, thereby offering an unprecedented
range of products supported by information
that could allow these products to be tailored
to each customer’s needs. “Everything store”
Bezo’s First choice: Books
- Durable
- Transporatability
- Huge variety
- Very suitable for that online venture
“Get Big Fast”
High fixed costs = low variable costs
Basis of Success for Gaga and Bezo of low prices and superior
convenience in driving
Lady Gaga built her career strategy through the
consumer demand.
generic tools of star creation with a uniquely
3. Objective appraisal of resources
differentiated image that has captured the
a. Lady Gaga has related her
imagination of people worlwide.
talents in relation to design,
- Shock value creativity, theatricality, and
- Fashion leadership self-promotion white
- Media presence perceptively augmenting thiese
skills with capabilities she has
Jeff Bezo built his strategy based on his assembled within her Haus of
relentless pursuit for growth through Gaga
- Price leadership b. Jeff Bezo’s leadership of
- Continual enhancement of the Amazon has exploited his talent
consumer experience as a business and technological
- Relentless quest for new opportunities visionary and his attributes of
persistence and ruthlessness
while bringing in the technical,
Strategy in Success for both cases logistical, and merchandising
know-how that he lacked.
1. Simple, consistent, and long tem goals 4. Effective implementation
a. Sefani Germanotta’s devotion a. Lady Gaga and Amazon beat
in pursuing her alter ego, Lady the odds and established
Gaga outstanding success owes much
b. Founding Amazon and its to their leaders’ determination
relentless growth; create the and ability to encourage
business that would take collaboration and commitment
advantage of the WWW to for others.
revolutionize the way people
buy goods and services.
2. Profoundly understanding of the
competitive environment
a. Lady Gaga’s business model and
strategic positioning was being
aware of the changing trends in
the music industry, marketing
through social networking, and
understanding the needs of
Generation Y (millenials; have
constant access to technology)
b. Jeff Bezo’s growth strategy for
Amazon combines being aware
of the business potential of the
WWW with insight into the role
Strategy vs. Tactics Corporate vs. Business Strategy
Strategy = the overall plan for deploying Lady Gaga’s Corporate Strategy:
resources to establish a favourable position
- Music recordings
- Concerned with winning the war - Live concerts
- Interactive games
Tactic – a scheme for a specific action
As these focus on where she competes
- Concerned with the mavoeuvres
necessary to win battles
Lady Gaga’s Business Strategy:
Both are: - Personal interaction with her fans using
digital media
- Important
- Her focus on theatricality
- Involve a significant commitment of
resources As these focus on how she chooses to compete
- not easily reversible and
Amazon Tactic: Offering free shipping initially to
customers paying $100 or more. It was
necessitate resource commitment, but it
boosted sales.
Amazon Strategy: Amazon Prime charged $79
fee to cover 12 months for free express
delivery. It made customers make a
commitment for a year and shift their
behaviour by giving them a huge incentive to
maximize their buying power from Amazon.
Which then gave Amazon an incentive to
broaden its range of merchandise.
What is strategy?
- Is the means by which individuals or
organizations achieve their objectives.
- Focused on achieving certain goals that
involve critical actions such as:
o Allocation of resources
- And that strategy implies:
o Consistency
o Intergration
o Cohesiveness
