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Hard Profitability Growth Strategy

Taylor's New Era

#Entertainment #Performing Arts #Live Events
ProHub Comment

This case tests the candidate's ability to build a profitability model in a non-traditional industry (live entertainment) while incorporating qualitative risk analysis into the final recommendation. It requires both quantitative rigor (calculating ticket and merchandise revenues with multiple variables) and strategic thinking about how risks and brand considerations factor into decision-making beyond pure profit maximization.

Estimated Time 15 minutes
Difficulty Hard
Source Bauer
50 / 100
Your client is Taylor Swift, the most popular singer/songwriter globally. She has reached out to you for help regarding her Eras Tour. She has just finished a 50 week long domestic Eras Tour covering almost every major city in the United States and wants to know what her next move should be. She has decided that she wants to continue the tour but does not know where to go next so her question to you is, should she add an extension to her domestic tour or should she reach out and begin an international tour?

Clarifying Information

  1. For sake of this case, we are only measuring profit from ticket sales and merch sales at the concerts. The increase in streaming of her music is immaterial to this case.
  2. Taylor’s goal for this case is to maximize profit while delivering the best quality performance to her fans as possible.
  3. If the candidate asks about number of shows, length of either tour, total weeks, etc that is all on the slide after the next.