Harlequin Case Study Summary

Issue
Harlequin is the largest distributer of romance series novels but is faced with a slow growth in series novels. Harlequin needs to decide whether they should expand into title-by-title books and how they will position themselves if they chose to do so.

Analysis
Harlequin is faced with the decision of how they should increase their unit sales and increase their overall revenues. By continuing in series novels, Harlequin will not be able to see growth in their company as unit sales are decreasing for series novels. Their profit margin is also a concern as single title books are more expensive than series novels. Harlequin has tried in the past to produce single title books but was not successful because they did not target a specific market and tried to succeed in too many genres.
Harlequin can ask these authors to write single title books for them, which will be beneficial as they are using established authors who have already developed a connection with readers. However, this is a very risky and expensive option for Harlequin as it is costly and authors may not be willing to do this. Best selling authors have already established new relationships with producers and distributors so they may not be willing to forfeit that and go back to a company that is developing themselves in single series. In addition, it is extremely expensive to acquire a best-selling author, as the advance is more than Harlequin can afford. Where Harlequin is now, they cannot afford a best-selling author even if the royalties are