read the mini case

two parts of this assignment

first part read the mini case and please respond to 3 of the 5 discussion questions below. Be sure to explain your rationale.

• Why was Cirque du Soleil initially able to gain and sustain a competitive advantage?
• What external and internal factors contributed to Cirque du Soleil losing its competitive advantage?
• How can Cirque du Soleil once again gain and sustain a competitive advantage?
• How has Maestro Andre Rieu created a blue ocean strategy?
• What are the similarities and differences in the strategies followed by Cirque du Soleil and the Johann Strauss Orchestra?

second parts

leave common for others answers

one paragraph for each people about there three answers so there should be three paragraphs but each paragraph include common for their three answers of the mini case the common should be thoughtful reflection, and clear and concise comments

1

1.WHY WAS CIRQUE DU SOLEIL INITIALLY ABLE TO GAIN AND SUSTAIN A COMPETITIVE ADVANTAGE?

Cirque Du Soleil was able to sustain the competitive advantage since it was the first initiator of not including the animals in its performing arts and “created uncontested market space”. The ideology of Cirque Du Soleil was purely based on blue ocean strategy since it only focused on value innovation by feeding its audience according to their best interests. The Cirque did not include significant names and high-cost performers. It worked on strategic aspects by identifying the requirement of the audience and fulfilling it by hiring those performers who were the right ones to the subject matter. These strategies helped them building low cost performing art industry but a highly effective one. In contrast to what Benjamin said apart from not including animals and considering high budget factors Cirque Du Soleil also had a centralized management system that operated in a different way depending upon the audience they have. All these factors along with making competition irrelevant collectively made a huge rule in making Cirque du Soleil highly sustainable initially.

2. WHAT EXTERNAL AND INTERNAL FACTORS CONTRIBUTED TO CIRQUE DU SOLEIL LOSING ITS COMPETITIVE ADVANTAGE?

Many elements contributed to the diminishing of Cirque Du Soleil both externally and internally.

EXTERNAL FACTORS

The lucrative decline during the years 2008 to 2010 lead to the turndown of the performing art industry. The reputation for economic growth was hugely challenged Cirque which results in the loss of gaining attention from the audience. As a result, the loyalty of Cirque Du Soleil was affected and the industry failed to come up with the audience’s need.

INTERNAL FACTORS

It could not work long enough on blue ocean strategy and market differentiation strategy, as a result, the cost of operation is increased substantially which leads to a reduction of profit within the industry. Cirque Du Soleil propounded too many shows without considering the interest of the audience and could not differentiate the production level of the shows since all were designed in the same pattern. The cirque which worked on the ideology of doing best to the audience advantage failed drastically and lost the interest of the audience by providing them the same scripted shows over and over again. The safety panorama was hugely challenged by the accident during their performing arts and redressed the prominence of CIRQUE badly.

3.HOW CAN CIRQUE DU SOLEIL ONCE AGAIN GAIN AND SUSTAIN A COMPETITIVE ADVANTAGE?

Cirque Du Soleil can gain an advantage by working according to The First-Mover Strategy. Better innovations and effective strategic aspects would help the performing art industry to gain a competitive advantage. The following are the steps that Cirque must take into considerations to gain its competitive advantage.

1. Ensuring high-class safety panorama for the athletes, performers, and all other working staff. It would build a safe image in the audience’s mind which was lost over the years.
2. The cost at which Cirque started operating was shifted to high-cost management latterly and resulted in the decline of Cirque which effected it economically. The Cirque must reconsider the brand value that was created initially which was to develop a separate market place and working to the audience’s demands.
3. Innovations in technology like usage of drones, 3D cameras, and holograms must be introduced to gain maximum audience attraction in this day and age. The Cirque must develop practice accepted failure to limit the loss whether it may be financially or life.
4. CIRQUE DU SOLEIL must take into notice that the performing arts must be true to life and relatable.

In addition to what Robin said about the addition of new technology in the Cirque industry to limit the accidents and risks, I think CIRQUE DU SOLEIL must redesign an effective pre-show practice phenomenon to limit that danger also. The human performing tricks must be enhanced since they are the basics of the circus industry because the whole industry can not be designed only on technology since it is a highly economic process.

2

Why was Cirque du Soleil initially able to gain and sustain a competitive advantage?

Investment on high-quality artistic shows since inception. Through the integration of a blue ocean strategy, Cirque du Soleil did not have to squash the competition like other companies due in a saturated market. There was never anything close to Cirque du Soleil’s dazzling shows. The theatrical producer created the market space it exists in today. The theater company focused specifically on fostering customer intimacy instead of finding a way to beat competitors. Through value innovation, the company was able to lower costs and heighten their perceived value. Cirque du Soleil was able to sustain a competitive advantage initially, because they were playing a game where they were the only player. They also set the standards for the industry making them the gold standard. They created a new entertainment experience never before seen with high-risk aerial performances and did not indulge in involving animals like circuses did. Finally, they raised their prices when they were already great; timing it perfectly to when they established world-renouncement.

What external and internal factors contributed to Cirque du Soleil losing its competitive advantage?

Internal Factors

-having an oversupply of shows that were all too similar in the consumer’s mind

-the death of two of their employees due to the show feature that was one their strongest advantage: aerial lifts

External Factors

-2008 financial crisis that affected consumer demand and their own finances

-poor reputation for safety, lawsuits

How can Cirque du Soleil once again gain and sustain a competitive advantage?

Cirque du Soleil’s best bet is to redefine its brand. I think that they need to do a better job at managing their brand. They need to disassociate themselves from their past issues with injury. They must also do some creative destruction. They must find a way to get rid of the high-suspense acrobatics, and at the same time, integrate an element to their show never before seen. I think that with the technology that we have today they should try to go the digital route in terms of improving the quality of their shows. I respectfully disagree with Benjamin’s idea that Cirque du Soleil should appeal to a broader market. I think part of what once made Cirque du Soleil the gold standard was its exclusive nature, only accessible to the elite and a few other consumer segments.

3

1. Why was Cirque Du Soleil initially able to gain and sustain a competitive advantage?

Cirque Du Soleil was able to gain and sustain a competitive advantage due to its blue oceans strategy, which combines cost-leadership and differentiation strategies through value innovation. Building on Robin Jain’s point about how Cirque Du Soleil was able to create an uncontested, blue ocean, market space using its “Eliminate-Reduce-Raise-Create” framework, Cirque was able to create value by eliminating and reducing expensive aspects of the traditional circus act that weren’t highly valued and sometimes even an annoyance to consumers while providing higher perceived-value through innovation. The higher perceived-value was really the key to success for Cirque Du Soleil in that it began offering more of a story rather than several separate acts paired with its lower cost strategy of removing in-aisle concessions, which kept customers engaged. The change in target audiences to older, more mature, individuals, also greatly benefited Cirque and allowed it to sustain its competitive advantage until its later demise.

2. What external and internal factors contributed to Cirque Du Soleil losing its competitive advantage?

I agree with what Benjamin Bavly said about the lack of constant innovation within Cirque Du Soleil’s shows, as I can attest from personal experience (having seen Cirque Du Soleil twice at two different locations) that the show was basically the same both times. Once a consumer had been once, or even twice, there was no incentive to return, therefore destroying the company’s chance at building a loyal, recurring, customer base. External factors that contributed to Cirque Du Soleil’s loss of competitive advantage was the increasing demand of internet based entertainment paired with a decline of in-person events. This can be seen throughout the entire entertainment industry as consumers are increasingly turning to digital solutions like phone applications or streaming services for entertainment, which are also much-much cheaper for the consumer than attending a one-off live event in-person. Also, a decrease in disposable income caused by the Great Recession in 2008 forced consumers to think twice about spending $75-$200 a ticket.

3. How can Cirque Du Soleil once again gain and sustain a competitive advantage?

I think that if Cirque Du Soleil is to regain and sustain a competitive advantage it must leverage its strong brand name and continue to innovate. As previously mentioned, the increasingly prevalent trend towards digital entertainment and streaming could provide a lucrative opportunity for Cirque Du Soleil, as they could create a series on Netflix or Hulu that leverages both the firms brand name and their ability to tell a story through their performance. The firm could also tap into the virtual reality or augmented reality trends and offer a less-expensive and innovative approach to live entertain while eliminating the high costs associated with building glamorous performance venues.