'Harlequin Enterprises: the Mira Decisions Essay\r'

'The basal issue facing mottle is the â€Å"steady liberation of share in a growing women’s fiction food market”, due to the growing popularity of single-title novels. With the book of account gross revenue dependence that is inherent in serial publication publishing, the unit gross sales stalling that occurred in the after-hours 80’s and primeval 90’s acted as a warning signal to mottle. A change in pricing strategies en adaptedd revenues to continue to rise, and this was a short-term solution and Mira has the possible to plump a long-term solution. However, there are a number of issues surrounding the launch of Mira.\r\nAs the humans’s largest publisher of dally fiction, mottle has a pissed orbiculate foothold in serial publication publishing with a strawman in more than than 100 international markets and 23 wordss. Indeed, Harlequin has been able to create heights barriers to entry in the serial publication market through t he set outment of brand committal and excellence in product quality and interpret chain management. Brand loyalty comprises a strong readership animal foot, which has been cultivated through brand recognition, trust, and long-term bloods.\r\nThis is show by the direct-to-reader Book Club, which presently permits 3/8 of US Sales at satisfyingly high margins than indirect sales. The low-price, consistent, high-quality product is well packaged and positioned ideally to take advantage of node expectations, supported by a large and capable compose/ editor in chief base. Standardization has enabled Harlequin to take advantage of significant economies of home plate in printing, distribution and publicizing; and simplifies retailers’ spatial relation and merchandise strategies.\r\nWhile standing order distribution enables Harlequin to more accurately predict sales and returns, and therefore bring in from predictable cost-based accounting practices to contact better margins. However, with limited diversification, Harlequin has little expertness in the broader realm of women’s fiction removed of the romance genre, which may limit their abilities to select and develop conquestful authors and titles, as was the case with the 1987 Worldwide depository library failure. Although, the Worldwide experience gives Harlequin a original appreciation of their strengths and provides a strong foundation from which to avert future mistakes.\r\nHarlequin’s inferior presence in traditional retail environments for single-title novels and limited advertising portfolio centred on print media somewhat restricts their sales to their existing, or stereotypical, customer base. Existing distribution partnerships are marvellous to resolve this issue and may force Harlequin to seek out new partnerships and/or mechanisms. jibe to the market research, â€Å"customers were reading as many single-title romance and women’s fiction books as series r omances. This implies that there is significant overlap with early(a) subject areas and market segments within Harlequin’s existing readership base and it should be possible for Harlequin to cultivate their customer loyalty and translate it to direct-to-reader sales in other genres. Mira alike provides the opportunity for authors to develop beyond the series format without moving to a nonher publisher, and still bide available to the Harlequin series genre. This promotes employee loyalty and meditate satisfaction, while allowing Harlequin to invest in promoting unmarried authors and benefit from the cross-segment marketing.\r\nThe overheads that Mira would incur, although substantial, would remain competitive with other publishers and would benefit from Harlequin’s global infrastructure. Foreign language markets, in particular, would be accessible to Mira through the utilization of existing translation services, distribution networks and retail relationships. Mir a would also provide Harlequin the opportunity to create economies of scale through the centralization of rights acquisition activities already creation undertaken in some international subsidiaries.\r\nConversely, Mira comprises an thoroughgoingly high risk undertaking for Harlequin with significantly high(prenominal) costs for production, distribution and marketing. A single-title novel is a unique product, which requires a publisher to generate higher per-unit sales volumes; create individual design, marketing and procession campaigns; and provide higher returns to authors and third parties. Production changes, at least in terms of product dimensions, could fill significant unforeseen impacts on the economies of scale before long enjoyed within the production and distribution supply chains.\r\nIf Mira is to vie with existing single-title publishers, long-term author contracts, royalties and advances could put extreme monetary pressure on Harlequin and represent a signifi cant level of investment, which may or may not be realizable in the long-term. Therefore, the failure of a single-title novel to achieve break-even sales targets has far-reaching consequences; and can seriously damage reputations upon which future sales would depend. Nevertheless, the most significant threat to the success of Mira is its potential in the US market.\r\nThe truce with Simon & Schuster achieved at the end of the Romance Wars may not be sustainable, if Harlequin launches Mira in direct competition with S&S in single-title publishing. This situation would be especially difficult given that Harlequin is all in all dependent on S&S for distribution of its series titles within the US market, and its deprivation of experience with mainstream retailing avenues. By pursuing Mira, Harlequin risks losing a highly efficient and profitable relationship with S&S and having to completely redevelop its distribution chain within the US.\r\nUpon consideration, Harlequ in has the resources and capabilities it involve in order to succeed with Mira. Although the company currently has a different business model, it has the same underlying components and critical resources necessary to create and manufacture the product. The author/editor base that Harlequin has at its giving medication represents a considerable asset, and somewhat mitigates the risk of giving selection and development that can be associated with single-title novels. historical market positioning and the reputation of Harlequin as a romance eries publisher may bulk large attempts to create the Mira brand; but Harlequin has reached the pane where it must expand beyond the romance genre. The direct-to-reader sales, marketing and distribution mechanisms would require few adjustments or adaptations, and would provide Harlequin with an ideal test market from which to fetch the leap into the mainstream. Existing production and distribution expertise would sustain development of Mir a, while Harlequin spends magazine putting mainstream distribution mechanisms and publicity expertise into place.\r\nIt is conjectural that successful single-title authors who published their early works with Harlequin could be convinced to return to Harlequin, depending on the financial incentives; but, this is a long-term question, governed by authors’ contractual obligations and the success of Mira in the short-term. However, the back-list of novels created by successful authors who published their early works with Harlequin comprises an easily marketable, cost-effective and potentially profitable resource, that would enable Mira to capitalize on established reputations and in-direct publicity.\r\nThe downside is that Mira may risk alienating or offend fans of established authors, by publishing works that did not meet reader expectations because of their quality or chemical bond to Harlequin conventions. Therefore, I would recommend that Harlequin coiffe a limited lau nch of Mira by re-developing titles in their back-list and generating direct-to-reader sales through the Book Club, while it explores global distribution and marketing relationships. References: Richard Ivey School of Business subject Harlequin Enterprises: The MIRA Decision #9B03M007\r\n'