Harlequin Enterprises Case Analysis

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STRA 6226: COMPETITIVE ADVANTAGE ------------------------------------------------- HARLEQUIN ENTERPRISES- The MIRA Decision CASE ANALYSIS PREPARED BY Ghosh, Soumik Kommareddy, Sashank The market for single-title women’s fiction novels has been steadily growing about 9% while that for series romance fiction is growing at less than 2% over the few years and Harlequin should try to adapt to this market change quickly and come up with successful single-title novels to increase its share of the market. Hence, the MIRA brand should be launched now. Although a similar initiative undertaken by Harlequin before- Worldwide Library had failed, this should not deter the launch but rather provide knowledge of what to do and what not to. Among the alternatives of launching MIRA with new, mid-list, established authors or may be through back-list novels, the option of back-list novels looks highly economical and less risky allowing Harlequin to experiment with time and resources and test the market before investing significant capital. Harlequin has the advantage of maintaining good relationships with many of its authors who are interested to write single-titles which is a win-win situation for both parties and eases the barriers to entry. Also, Harlequin has the necessary distribution networks both in US & abroad to channel its products to consumers. However, product differentiation, knowledge of consumers’ tastes, ability to transform to changing market conditions with a strong distribution network along with maintaining healthy margins and higher sales are the keys to succeed in single-title novels publishing and Harlequin has to carefully build its capabilities to achieve those keys. Harlequin’s core business – series romance fiction is very different from single-title publishing. Every new series romance book is a mere addition to the existing product line

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