Strategic Management (MGT 489)

Case-3

Submitted To:
Bobby Hajjaj

Submitted By: Group-6

SL Name ID

1 Md. Jobaer Hossain 1120005030

2 Sumaiya Khair 1310488030

3 Md. Najmul Sharkar 1320036030

4 Md Monoare Hossain 1310117030

5 Md. Balayat Bhuiyan 1310332030

6 A.M Shahriar Amir 1310756030

7 Md. Istiak Hossain 1320468030

8 Maliha Ferdous Chowdhury 1411239630

Date of Submission: 11th November 2017

INTRODUCTION
Cirque du Soleil is a circus company that is famous for its unique hybrid of music, dance and
acrobatics the Cirque Du Soleil has created a new category of live entertainment. The
company’s unique entertainment is very much appreciated by the audience because they
never compromise creativity to make profit.
VISION
The Vision of the ‘Cirque Du Soleil’ is, “create a creative entertainment platform where art
can lead to invoke the imagination, provoke the senses and evoke the emotions of people
around the world.”
KEY ISSUES
 The business is profitable but currently having problem with the growth because the
existing expansion plan is too much capital intensive.
 The Cirque du Soleil faces human resources challenge unlike any other.
 They wanted to establish mega entertainment complexes consisting of a combination
of hotels, restaurants, retail stores, museums, spas, and the like, all sharing the
common theme of the alternate “Cirque” reality.

GOAL
To successfully implement the diversification strategies to ensure sustainability in the
globally competitive market place.

STRATEGIC ANALYSIS
Analysis Model: Resource Based View Competitive Advantage
Valuable:
Cirque Du Soleil's key resources are Innovation, human resources and diversification, and
brand image. Those resources have dependably been profitable to them. As a matter of fact,
those are the key assets that made Cirque Du Soleil a fruitful circus organization.
Sustainable:
Their culture of innovation can be sustained for a very long time and made them successful
as a business. However, we cannot propose that the other key Resources they have are not
highly sustainable.
Scarce
Their innovative culture is rare. They avoid going public to protect its creativity and innovation
system. They altered the format of conventional live entertainment by creating shows
without animals that are not only entertain but also inspiring. They blend music, dance,
acrobatics and other artistic elements in shows which is rear in circus. Huge innovative
workforce has made this possible.
Inimitable
Their workforce is highly innovative. The ideas of the unique show come from the creative
brains of their employees. It could have become competitive advantage for them if it was
inimitable. But the fact is competitors can hire their workforce and start generating unique
show ideas. So, it is not inimitable. But their HR department is so much caring to their
workforce and they are providing all sort of benefits to these creative brains.
Non-Substitutable
Cirque Du Soleil has been operating as a successful entertaining business for a very long time.
They have changed the traditional circus which has been going for a very long time. But this
type of entertainment can be easily substituted by other forms of entertainment like motion
pictures or amusement park and so on. Moreover, the way digital entertainment is increasing
it might have a huge impact on the live entertainment industry like circus or any sort of stage
shows.
Competitive Advantage
Innovation & Creativity:
They have been able to create a unique creative and fun platform as a form of entertainment
which shows innovation and creativity. They changed the perception about circus at whole
and was able to create a sense of alternate universe in the spectator’s mind.
Brand image:
Their brand image speaks for their exceptional ability to showcase art as entertainment. The
name itself became synonymous to innovation and creativity of high quality.
 Cirque Du Soleil has achieved a Blue-Ocean Strategy. Its competitive advantage
comes from its innovation which is hard to emulate.
 Analysis Model: X-Factor
X factors ordinarily infers the things that are must have in a business. For a circus business X
variable would be performance, time table, area, price (tickets). For our analysis we can state
that as far as execution Cirque Du Soleil is topnotch. Their performance isn't just sufficient
(productivity outskirts) yet in addition exceled the distance to upper hand or we can state
their execution has turned into the X-Action for them.
 Time table: They are very dependable.
 Area: They move from city to city with their gigantic framework. So, except for
headquarter, they don't have settled area.
 Value: They are adding more value by maximizing revenue as their ticket costs are
very high.

Analysis Model: Value Chain

Firm Infrastructure:  Austere financial policy

 Vertical Process Integration
 Lucrative coordination of the value chain process

HRM:  Expensive Training

 Substantial Recruitment
 Unique talents at low cost

Technology Development:  High tech for marketing and information sharing

purpose
 High tech R&D program
 High tech innovation

Procurement:  Systematize Practices

 Robust trans-border relationships
 Structuring tech pyramid

Inbound Logistics Operations Outbound Marketing Services

Performance Logistics -Merchandise
-Coordination of -Production -Outlets -Localized Global -Tours
Performers Alignment -Internets Marketing Team
STRATEGIC RECOMMENDATION
 Company can expand geographically and set up their permanent show like in Asia.
 They can use their creativity in diverse way like an advertise industry which can be
profitable for them.
 Cirque Du Soleil can perform in high budget opening ceremony like world cup
football, cricket, and other festive events which can set new opportunity for them.
 To utilize brand image fully they can offer more merchandises, interior décor theme,
paintings and other artistic product and services to increase their revenue.

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