5. How can her team best go about further developing her touring and recording career
1. If you were Troy Carter, which of the touring options would you pursue for Lady
Gaga? Why? How much money does Gaga stand to gain (or lose) under each option?
In your view, do the potential rewards justify the investment?
If our team had the position of manager of Lady Gaga, then it would be decided to remain
with a strategy of keeping up with the medium size venues in the USA instead of arenas,
this because of the simple fact that exclusivity creates demand. Of course we would
consider supplying all the demand that there is for such shows, it would be done by having
multiple presentations in the same medium size venue in consecutive dates or returning to
the same venue after certain amount of time, this would guarantee that all demand for
Lady Gaga’s shows would be properly taken care of. Also, financially it is a wiser move
due to the fact that having shows in arenas is much more expensive than in medium size
venues and it is easier to sell out shows in these such venues than in arenas which would
reduce greatly the opportunity costs due to the fact that there would be less empty seats.
But when dealing with international tours, then it would be ideal to do it in arenas due to
the fact that this shows abroad are less frequent, thus the need for an arena in which to
accommodate all the demand that there is for Lady Gaga in that country. The use of the
arenas here would be more than necessary given that sometimes there would be shows