Friday, November 28, 2008

Oprah's Favorite Things

Talk show super star Oprah Winfrey recently announced that she would not being having the always anticipated "Oprah's Favorite Things" show this year due the economic peril.  The show is famous for showering audience members with thousands of dollars of free gifts that Oprah has chosen to be her favorite holiday gifts of the season.  

It has become evident that whatever Oprah proclaims as a necessity soon becomes a necessity for an ever growing market in the U.S.   Oprah's book club choses become impossible to find in bookstores just as her "Favorite Things" become impossible to locate...anywhere.  The average consumer (or marketer) would revel in the free publicity and instant demand for the product but the operations managers of these companies have learned to be more hesitant.  

Oprah and her staff do not inform these companies that their products are about to experience a huge shift in demand.  While the companies might be pleased by increased demand, they will be less pleased about increased stock outs and angry customers.  While Orpah's favorite things surely become hot commodities, the short holiday season doesn't allow most companies to capitalize on this short term burst in demand.  Rather these companies risk being bombarded with unhappy customers for months to come.  

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