Oprah Winfrey – The Story of an Entrepreneur
 <<Previous
OPRAH – THE ENTREPRENUER contd...According to
analysts, Oprah was not in the ‘business of business,'she was in the
‘business of soothing souls.'The kind of intimacy Oprah enjoyed with her
audiences was something that reportedly no other talk show host had ever
achieved. Oprah's message, ‘You are responsible for your own life,'acted as
her unique selling proposition (USP) just like ‘convenience'and ‘everyday
low prices'(the USPs) of McDonald's and Wal-Mart, respectively.
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 Swanson[7] and Jeff Jacobs[8] (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.
More...
OPRAH – SERVING THE PEOPLE
THE OTHER SIDE OF OPRAH?
THE SHOW GOES ON
QUESTIONS FOR DISCUSSION
EXHIBIT I AWARDS WON BY OPRAH
EXHIBIT II FAVORITE TV PERSONALITIES – RANKS
ADDITIONAL READINGS & REFERENCES
[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.
2010, ICMR (IBS Center for Management Research).All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted
in any form or by any means - electronic or mechanical, without permission.
To order copies, call +91- 8417- 236667 or write to ICMR,
Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal,
Ranga Reddy District,
Hyderabad-501504.
Andhra Pradesh, INDIA.
Ph: +91- 8417- 236667,
Fax: +91- 8417- 236668
E-mail: info@icmrindia.org
Website: www.icmrindia.org
|
More Classifications...