Oprah Winfrey - The Story of an Entrepreneur

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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;

Oprah Winfrey - The Story of an Entrepreneur | Case Study

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The Harpo empire, however did not function purely on Oprah's personal skills. She had put in place a team that dedicatedly worked towards keeping the business running. Dennis Swanson7 and Jeff Jacobs8 (Jeff) President, Harpo Group, contributed greatly to Oprah's success as a talk show host as well as a businesswoman over the years. Explaining Oprah's business, Jeff said, "We bet on ourselves. We are an intellectual property company, and our partners (ABC, Hearst, Oxygen) are distributors. Core content is developed here and has never left our home base." Jeff said that controlling content was a difficult task as Oprah was not only the chief content creator but also the chief content itself. For instance, every issue of 'O'sported a 'bold and winning' picture of Oprah on its cover page; in her columns in 'O' she gave details of her personal life such as her battle against abuse, her triumph over adversity and her attempts at losing weight. She also discussed her painful experiences as victim of child abuse and racism. Commenting on the content, Oprah said, "I bring all my stuff with me." Analysts felt that Oprah's life was central to her 'brand.' They believed that by making herself and her struggle against adversity the central theme of her messages, she successfully touched the American psyche and motivated Americans to become self-reliant.

Oprah won the audience's trust by sharing her personal experiences with them on daytime TV to help them deal with their problems and become accountable for their own lives. This strategy reportedly kept Oprah ahead of her competitors. Analysts believed that Oprah was reluctant to lose control of her brand because she was aware of its power. Oprah consistently refused requests from major companies to use her name on their products, such as perfumes, clothing, books and food. One of the Oprah's friends remarked that everybody wanted 'a part of Oprah's brand' but she was not ready to cede control over it. Analysts said that though some of her competitors (such as Martha Stewart) had lent their name to various products, Oprah firmly refused to do so. Since, many of the products marketed by celebrities had failed in the market, analysts felt that Oprah was right in refusing to dilute her 'brand equity.' Oprah was also against taking the Harpo Group public, she held 90% of the Harpo Group herself. She claimed that by selling her name or a part of her business, she would be 'selling herself.' In Oprah's words, "If I lost control of the business, I would lose myself or at least the ability to be myself. Owning myself is a way to be myself." This clearly indicated how the lady perceived her businesses and the extent to which her businesses were based on Oprah herself. Analysts felt that Jeff's business acumen also contributed greatly to Harpo's success. Oprah and Jeff were rather an odd pair to be running a business as both had very different management styles. According to analysts, Oprah followed a management-by-instinct technique and took all her decisions on the basis of her gut feelings, while Jeff believed in careful planning and execution. While Jeff described Harpo's strategy as multipurposing the content in various media, Oprah explained it as reaching out to a larger audience (through different media) to help people better their lives. However, the success of Harpo Group made it evident that the relationship worked.

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7] Dennis Swanson was the head of WLS-TV, Chicago. He appointed Oprah as a talk show host and convinced her that she could succeed even though she was overweight and an African American. Such was his belief in Oprah’s capability, that he ran her show opposite Chicago's number one talk show hosted by Phil Donahue. Within one month, Oprah's show replaced Donahue's in ratings.
8] Jeff was an entertainment lawyer in Chicago. He helped Oprah handle legal formalities regarding her contracts. However, by 1986 he convinced Oprah to establish her own company instead of lending her talent to outsiders. This led to the formation of Harpo Entertainment Inc, in which Jeff was given 5% share. Jeff joined Harpo as President in 1989. In recognition of his contribution to the company, Jeff’s stake in the company was increased to 10% later on.