Sourav nag 1821407360 mid case 2 PDF

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MGT 489 Cirque Du Soleil: Can it Burn Brighter

Sourav Nag Case :2 ID:1821407630 Section: 8

Vision Frame Work 1.Intention A. Mission: Renovate Cirque Du Soleil so that they can rule and became successful in both artistically and commercially B. Strategic intent: They are one of the biggest circus company in the world they created opportunity for a bunch of talented performer in live entertainment service

2. Ideology Core Values: Creativity, Passionate artist, Diversified expert performer, Naturalism Core Purpose: Make a diversified combination of music, dance, and acrobatics as a circus so that people enjoy it and they can earn money much enjoyable way

Key Issues     

Lack of foresight in expanding business Failure in project Lack of newness in business Lack of innovation Increasing expense but profit going down

Goals Expend their business both artistically and commercially and build a strong position in world entertainment industry.

Porter’s Five Forces model Threat to New Entrant

Moderate

  

Competitive Rivalry

Power of Customer

High



High

    

Power of Suppliers

Low

 

Threat of Substitutes

High

  

High capital Cost Restriction in entry regarding legal and licensing Cost Higher competition in market A lot of competitor in the market and competition is high Brand loyalty is poor Lower Switching cost Customers size is small It is an inferior good so customer can skip this good Customer switching cost is low Switching cost low for company Supplier bargaining power low A lot of substitute in the market Switching cost is lower for the customers Lower customer loyalty

Analyzing Porter’s Five Forces model: By this model we can see that new entrant treat is moderate level where competitive rivalry is high, power of customers is also high which indicate unattractive market. Market also have high level of substitutes treat which indicate Cirque Du Soleil should invest in research and differentiate their services to achieve their goal

Value Chain

Major Activities:

Infrastructure Performance center HRM Versatile people in work,profetional trainer Technological Development Strong work force Procurement Brand value

Inbound Logistic Arranging show

Operations Training

Marketing Sales

Outbound logistic

Service Ticket selling

Shows

Entertainers from different part of the world

Critical Value Creating Activities: Cirque Du Soleil's value creating activities are recruiting, training and marketing which differentiate them in the market

Conduct Internal Cost Analysis: Cirque Du Soleil reduce costs by non-critical or administrative activities. For this Cirque Du Soleil's have to reduce the show costs by different way.

Internal differentiation analysis:

If Cirque Du Soleil's try to differentiate their performance standard they should more focus on creativity and training so that they can be unique in the market.

Industry profit pools: The main income source of earning is from ticket selling. By train more people and make more permanent performer company could be more benefited

Vertical linkage analysis: They should more focus on their training center because it can give more performer to the company

Iteration: They can reanalysis the steps and also change any of it if needed

Value Net

Suppliers Sports event, Cosmetics suppliers, Olympic

Competitors (Cirque Eloize, Archaos, cirque Eos, Feld Entertainment, Cirque Copycats)

Cirque Du Soleil

Buyers (Audience Theaters

Complementary (Hotel, Resort, events)

Key Success Factors Prerequisites for Success i.        ii.

What Do the Customers Want? enjoyable affordable creative Brand Convenient Comfortable Best performers and performer

How Does the Firm Survive the Competition?  They always try to make natural content  Diversified performer from different part of world  They have a brand image  Positive mindset in customer’s mind  Focusing on quality not quantity

X Factors In key success factor we disuses about what customer want and also what company provide towards customer we can see       

Enjoyable Affordable Creative Brand Convenient Comfortable Best performers and performer

Above Efficient Frontier Below Efficient Frontier Above Efficient Frontier Above Efficient Frontier Efficient Frontier Above Efficient Frontier Above Efficient Frontier

So we can see that they will provide a marvelous service in market if they fix some issue regarding affordability they can make good in long run

Distinctive Competence: Best Quality performer: Cirque Du Soleil have best quality performers from different part of world. Which make them more versatile, they have performer from different discipline who’s are best in their field. High quality performer give better result which make them more unique Unique form of art: Cirque Du Soleil does unique form of art they repackaged a way of presenting the

circus show, in much more modern way which make them a unique company in the industry

RBV Model Valuable

Rare

Inimitabl e

NonSubstitutabl e

Organizatio n Capacity

Brand Image Reputation Traditional History

Yes Yes Yes

Yes Yes Yes

Yes Yes Yes

Yes Yes Yes

Yes Yes Yes

So we can find out Brand image, Reputation, Traditional History are the finding from RBV model

Value Innovation Cirque Du Soleil is one of the great example of Blue Ocean Strategy, Cirque Du Soleil started their

business with a unique idea of repackaged a way of presenting the circus show, in much more modern way. But after a long time competitor are involve. Also lack of innovation and strategy Blue Ocean Strategy does not effective any more. So if Cirque Du Soleil maintain their Blue Ocean Strategy they have to bring up with new strategy like they focus on more uniqueness, more research regarding innovating new way of entertainment

Game theory Dominant strategy for Cirque Du Soleil using Game theoryAssuming: 1. It is a simultaneous game 2. Indefinitely played game

Cirque Du Soleil

Renovate Do not Renovate artistically and artistically and commercially commercially Renovate High, High artistically and commercially

High, Low

Competitors

Do not renovate Low, High artistically and commercially

Low, Low

Three Generic Strategies Cirque Du Soleil in 3 generic strategies-

Cirque Du Soleil is Differentiator if we consider cost leadership and differentiator Their ticket price is high They have uniqueness They focus on differentiate their product Cirque Du Soleil is Mixed if we consider Market Scope They target all class people They try to provide services in convenient way to everyone

Recommending Strategy After all this frame work and strategy steps there are some recommendation regarding this. Cirque Du Solieil should focus on their research and commercial part. They should bring new things in their business. They have experienced team that is there competitive advantage which should be use more and make their business more cost efficient. They should focus on their marketing strategy by which they can reach to more people....