Harlequin Enterprises Inc.

Jiacheng Zhan 20629404

Case: “Harlequin Enterprises Inc.:  The Mira Decision (Condensed)”

1.Who is Harlequin's series customer and what value does Harlequin's product create?

        The 50 million readers of Harlequin’s series are all around the world with 40% of them in North America and having a median age of 41. The majority of these readers are likely to be married and well-educated. They spent at least 3 hours reading a week and are loyal to the Harlequin brand.

        Values: Consistent, Wide-ranged, High Quality from good story-tellers, many languages, low price through standardized management and cost efficiency, convenience of the book club and delivery services,

2.Where in its series value chain does Harlequin create unique value?

        Consistency: the editors picked out submissions that are consistent in style and quality, so the readers know what to expect when they purchase Harlequin books.

        Low Price: they are like magazines. The retailers have a consistent ordering pattern that allows for accurate print quantity estimation.

3.Series romance fiction is one of the most profitable areas of book publishing.  Why is it so difficult for competitors to imitate or replicate Harlequin's success?

        Many competitors have attempted but withdrawn. One reason may be the loyalty from customers that Harlequin has developed over the years through consistent high quality books. “We have no winners and no losers” mentioned a Harlequin insider.

        Another reason could be due to economies of scale. With consistent sales and over 50 millions readers, Harlequin was able to keep the cost very low, and this translates into customer value by lowering the prices of books.

4.How do the series business and the single-title business differ?