Apple vs. Amazon in the Fight Over Gaga

by Elaine Schwartz    •    May 27, 2011    •    652 Views

From a guest blogger, Frances Bird, AP econ student:

Lady Gaga, America’s current pop queen sensation, is being used to boost Amazon sales, if not permanently, then temporarily. Amazon is using Lady Gaga’s recent album, Born This Way, to compete with Apple Inc.’s iTunes in the digital music industry. While iTunes is selling the album for $11.99 and each song for $1.29, Amazon is selling the album for $6.99, $2 below wholesale prices!

Amazon is using amazing discounts to woo customers while Apple sits back and attracts consumers. Amazon can barely make a dent in the sale of music on iTunes because Apple products are the best in the business. Forget about price competition. Apple Inc. doesn’t need to lower prices to attract consumers!

On another note, Lady Gaga cannot be forgotten when talking about economics and Born This Way. Lady Gaga is a marketing genius because she is unique and she is real. Gaga has transformed the music industry, tearing up the standard of what famous people are supposed to wear and how they are supposed to look. Each stunt Gaga pulls is unique and unconditional, which makes for a truly shocking and awesome performance. Lady Gaga fights for a cause and she fights hard, so everyone knows what she truly believes.

Maybe Gaga taught Apple a lesson on how to fight for what you want!

The Economic Lesson

With Amazon’s fight to be in the running, what market is the music selling industry a part of?

An Economic Question: When trying to pursue something difficult, think of the strategies you could use economically to end up on top. After all, Lady Gaga did not become famous because of her musical talent.


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