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Harry Potter Case Study

By tuntun04 Jun 04, 2013 309 Words
Harry Potter is a series of seven novels written by the British author J. K. Rowling. The books is the chronicle adventures of awizard, Harry Potter, and his friends Ronald Weasley and Hermione Granger, all of whom are students at Hogwarts School. The main story concerns Harry's quest to overcome the Dark wizard Lord Voldemort, whose aims are to become immortal, conquer the wizarding world and destroy all those who stand in his way, especially Harry Potter. Since the release of the first novel Harry Potter and the Philosopher's Stone on 30 June 1997 and the last on July 2007, the books have gained immense popularity, commercial success worldwide As of June 2011, the book series has sold about 450 million copies, making it the best-selling book series in history, and has been translated into 67 languages. The last four books consecutively set records as the fastest-selling books in history.

Question 1:
To what extent was the Harry Potter series simply a loss leader for the hypermarkets? Harry Potter simply a loss leader for the hypermarkets because it’s just a marketing strategy which was used to gain enormous market share of the Harry Potter books with the acceptance of millions dollars loss. Question 2: Should such price cutting be outlawed or regulated to protect smaller retailers? Price cutting should be regulated to not only protect smaller retailer but also prevent market from many consequences such as leading to loss profit and price war, cheapen a brand, etc when price cutting is not controlled. Question 3: Bookstores in Kuala Lumpur withdrew the book in protest. Was their reaction justified? The action of bookstore in Kuala Lumpur withdrawing seventh Harry Potter in protest is justified because it protects their own benefit from being loss and claiming their objection attitude toward the loss leader strategy of other giant retailer.

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