Business Case Study: Cirque du Soleil's IT and Strategic Decisions

This case study analyzes Cirque du Soleil, a renowned entertainment company, focusing on its background, challenges, and strategic decisions. The study delves into the company's evolution, highlighting the importance of information technology in enhancing creativity and managing business operations. It examines the issues faced before IT implementation, such as data storage and database management, and how these were addressed. Porter's Five Forces and the resource-based view framework are used to analyze Cirque du Soleil's market position and competitive advantages, identifying both tangible and intangible resources. Recommendations for short, medium, and long-term goals are provided, including improvising performing arts, enhancing profitability, and maintaining a leading position in the competitive entertainment industry. The study emphasizes the importance of adapting to consumer demands and leveraging unique strategies for sustained success.

Running head: CASE STUDY ON CIRQUE DU SOLEIL
CASE STUDY ON CIRQUE DU SOLEIL
Name of the Student;
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CASE STUDY ON CIRQUE DU SOLEIL
Table of Contents
Background......................................................................................................................................2
Analysis:..........................................................................................................................................3
Recommendations:..........................................................................................................................6
Bibliography....................................................................................................................................8

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Background
Cirque du Soleil is a company famous for organizing the public entertainments. The
headquarter of this group is at Montreal. The company was established in 1800s. This is a
popular public entertainment group which is touring all over Canada. Apart from that the group
is also performing in USA and Europe. It has been realized by the mangers of the group that the
implementation of the information technology is important for enhancing the creativity,
imagination and inspiration of the group. In order to implement the information technology
system for managing of the business of the group, the top management has to be convinced that
there is a need for the advanced implementation of IT.
Initially the group had no IT team of its own. The solutions were hired from the experts and
the professional. This enhanced the communication between different members and the
management of the Cirque du soleil. Moreover the use of the information technology had
enhanced the flexibility in arranging shows and tours. Later the group has its own IT team. This
entertainment group has later well equipped IT solutions of their own which has helped the
group effectively in arranging the shows and running and managing of the business in an
improvised way. Apart from the successful implementation of the information technology in the
Cirque du soleil, the management was also concerned about the proper management of the
knowledge within the Cirque du soleil. The company has faced challenges and issues during the
arrangement of the shows before the implementation of the information technology. These issues
have been handled and mitigated by the company through the implementation of the information
technology and using IT for different services during the arrangement of the shows. Some of the

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identified issues those were faced by the Cirque du soleil before the implementation of the
proper information technology plan in the Cirque du soleil are-
 Storing of the files, data and images: Earlier the data and the files were not stored in
proper way. The images and the pictures were stored in 35mm rile. Those files and the
images can not be stored properly and there was a chance that those files can be
destroyed. After the implementation of the proper information technology plan in the
Cirque du soleil the digitization of those files are possible.
 Better management of the database: Earlier the Cirque du soleil was facing some
problem regarding the costume making for the show. There was lack of creativity in the
patter of the costumes. However, after the digital implementation and the usage of the
database , new patterns can be stored in the database. In this case the company can use
different patterns in the costumes for different events. Apart from that every details in the
makeup process has been stored in the database helps the artists during the performance.
 Lack of observation for the preparation for the performance: the Cirque du soleil was
facing problems regarding monitoring of the fitness and the preparation of the artists in
the Cirque du soleil.
 Increasing responsibility: The Cirque du soleil was facing the pressure of increasing
popularity. The increased popularity had made the Cirque du soleil more responsible for
better performance. Apart from that managing and tracking the increasing number of
artists in manual way was difficult for the management.

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Analysis:
The analysis of the current position of the Cirque du soleil can be done through the use of
the different frameworks. In this case Porter’s five forces has been used to understand the market
position for the Cirque du soleil.
Threat from new entry: the threat from new entry in the industry is high for the Cirque
du soleil. Recently the entertainment industry is growing rapidly. Many companies are investing
their money in the entertainment industry. In this situation the number of companies are
increasing in the entertainment industry. In this case they are providing innovative performances
to the audiences and the uniqueness in the ideas are giving them the success. In this situation
Cirque du soleil has to provide better performance and the modification and the improvisation of
the performance is needed to be done in a proper. This will help the Cirque du soleil to hold its
place and goodwill in the competitive market.
Bargaining power of buyer: Bargaining power of the buyer in this case is moderate.
The entertainment industry is booing sector. However, the shows organized by this industry is
still relevant to the certain amount of people. In this case bargaining power of the people is
medium. however, with the growing participation of different companies in this industry has
made the consumers to choose from the various options.
Bargaining power of the supplier: In this case the supplier is the Cirque du soleil itself.
The Cirque du soleil is responsible for presenting their creations to the audiences. Currently
Cirque du soleil has acquired a good position in the entertainment industry. In this situation they
can demand a good amount of money from the sponsors for organizing the show. The bargaining
power of the supplier in this case is high.

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Threat from substitution: The threat from the substitution is moderate. Entertainment
industry can be considered as a dynamic industry. Moreover the demands and the requirements
of the consumers are changing rapidly. In this situation new companies are improvising
themselves according to the demand of the consumers. Apart from that there are various forms of
arts and crafts are using the in the entertainment industry. Apart from that the growing influence
of the social media and other digital media is also influencing people to get stick into a particular
type of entertainment medium. All these factors can be threats for the expansion of the business
of the Cirque du soleil in this situation it can be said that the threats from the substitute forms of
medium is high for the Cirque du soleil.
Competitions between different companies: the competitions between different
companies in this sector is medium. There are various number of companies. However, the
competition is happening between some of the best companies in this case. So the level of
competition the Cirque du soleil is facing with other is medium.
Another framework that can be discussed for the development of the overall situation for
the Cirque du soleil is resource based view framework. Resource based view is used to achieve
the competitive advantage for an Cirque du soleil.
The main objective for the Cirque du soleil to achieve the competitive advantage through
exploiting the resources and capabilities. The main advantage of using the resource based view is
that it is much flexible than Porter’s five forces.
Using the resource view framework Cirque du soleil can categorized the resources into
tangible and intangible resources. Tangible resources in the Cirque du soleil are the human
resources, the servers used in Cirque du soleil and the different software those are responsible for

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the enhancement of the performance by Cirque du soleil. The intangible resources are the work
culture of Cirque du soleil, the goodwill of the Cirque du soleil in the industry.
After the identification of the resources it is important for the Cirque du soleil to evaluate
the value of those resources. This can be done if those resources can justify some of the
parameters. These parameters are valuable, rare, imperfectly imitable and non-substitutable. In
Cirque du soleil the human resource can be considered as non-substitutable as the performing art
can not be done by the artists. Apart from that the large implementation of the information
technology for managing the functions of the Cirque du soleil is not an easy task. In this case this
can be identified as imperfectly imitable. The goodwill of company is valuable or the image of
the company and this also has a positive effect on the expansion of the business of the Cirque du
soleil. Apart from that the good working culture is a positive thing for the company which is a
rare quality. It can be said that all the identified tangible and intangible resources in Cirque du
soleil are important resources and exploiting all these resources in a positive way can give
Cirque du soleil a competitive advantage.
Recommendations:
The recommendations for the further improvement of the overall situation for the Cirque
du soleil can be categorized into three categories. The recommendations can be made on the
short term, long term and medium term goals.
Short Term goal: The short term goal for the company is to improvise the performing
arts. In order to do this Cirque du soleil can use different technologies for the improvisation of
the art and craft and the creating different features.

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Medium term goal: The medium term goal of the company is enhance the profit from the
business. In order to do this the overall modification and the improvisation of the business are
needed to be done. Apart from that proper survey can indicate the demand of the consumers.
Long term goal: The long term goal for Cirque du soleil is to hold the best position in the
competitive industry. There are other companies present in the industry who are doing well in the
performing business. In order to hold the better position in the market the Cirque du soleil has to
do some unique things in the performing art those are not practiced by the other companies. This
will help the Cirque du soleil to hold the attention of the audiences and will give them the
competitive advantage.

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