Oprah Winfrey - The Story of an Entrepreneur
Details
Themes: Corporate Social Responsibility
Period : 1957-2000
Organization :Infosys
Pub Date : 2002
Countries :Japan
Industry : Media and Entertainment
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Case Code : LDEN006
Case Length : 14 Pages
Price: Rs. 300;
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According to company sources, Jeff acted as Oprah's strategic advisor and dealmaker. In Oprah's words, "He is a piranha and that is a good thing for me to have." Remembering his meeting with Jeff and his commitment towards Oprah, Iger said, "I remember being put off initially, but Jeff Jacobs has one thing in mind: his client. And he serves her very well." Despite his many contributions to the company, Jeff preferred to remain in the background, and referred to himself as a 'behind-the-scenes guy.' Besides being the president of Harpo, he also acted as Oprah's personal agent, making her deals and agreements. This arrangement resulted in a saving of over 25% on Oprah's income, which would have gone in payments to agents and managers. Commenting on the financial success of Oprah, Jeff said "We understand it is not just how much you make but how much you keep." Oprah was known for taking sudden decisions on the basis of gut-feeling. Oprah decided to launch 'O's first international edition (in early 2002) when watching a documentary on Africa, which showed some women in a beauty parlor in Nairobi reading 'True Love' and 'Hello' magazines. Commenting on this, Oprah said, "I thought, 'African women have no business sitting in a beauty shop reading 'Hello!' and 'True Love.'" Soon after, she launched 'O' in Africa! |
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Interestingly, Oprah's business decisions (based on her gut feelings) were often successful. Her decision to place run the table of contents of 'O' on page 2 was not common business practice. Most publishers placed it in the middle of the magazine so that readers had to go through a couple of advertisements in search of the table of contents. This practice aimed at benefiting advertisers, but Oprah, in her own words wanted to "put the readers first." The fact that 'O' was an instant success proved Oprah's decision right. Commenting on the magazine's success, Oprah said, "I am most proud of the magazine, because I did not know what I was doing." Media reports claimed that 'O,' which was mostly developed by Oprah, reflected her ability to balance practicality and preaching. Analysts believed that Oprah knew that such balance would sell - and it did. According to them this was the same strategy that made her talk shows such a success. Oprah maintained a balance between the issues or persons she chose for her show. For example, if one day she discussed the entertainment industry with a celebrity, the very next day she examined a grave issue such as the problems of women in Afghanistan. Reportedly Oprah followed the same 'balanced' approach with her finances also. Though she did not track her costs closely, she was aware of their magnitude and was sure to draw the strings when necessary. For instance, when Oprah found that the production costs of her show amounted to $50 million annually (which was double the expenditure incurred by other day-time talk shows), she called up Doug Pattison, Harpo's CFO, and said "That is okay, but that is also enough. I think we can keep it at $50 million."