CASE STUDY

Cirque du Soleli



Cirque du Soleli

Introduction

The technology has great impact on the business as it helps the organization to produce goods and services with innovative methods. The impact of technology is very high as it forces many organizations to leave the industry. This report will focus on a circus name “Cirque du Soleil” and will cover innovative strategies that the company has adopted to make profits when the whole circus industry is on recession or witnessing downturn. The report will also provide information related to industry and how innovative strategies of Cirque du Soleil attract customers.

Impact of Technology

The circus falls under the category of entertainment industry which is majorly affected by technology. The technology has introduced mankind with new ways of presenting products and services. The technology introduces television and internet which are consider as most effective and widely used for providing entertainment. Moreover, these products (television and internet) provide entertainment more conveniently as compared to circus. The customer does not need to make a plan to go anywhere for the sake of entertainment but just switch on the television or internet. The behaviour of customers has also been changed as now they use to go to theme park for entertainment purpose which was not available previously. The above mentioned points have affected circus business.

Change in Customers Preferences

The circus business has lost its charm and customers because of technology. It is a fact that the circus industry is under pressure because there are number of other players (television and internet) in the field of entertainment. This made the circus obsolete and old fashion and the circus business becomes falls in the category of Red Oceans (where growth is unexpected and unprofitable) (Maglio & Spohrer, 2008, pp. 19).

Innovative Strategies

It is a fact that when an industry (circus) is witnessing downturn on macro-level then it is very difficult for its one player to make a profitable business. The Cirque du Soleil followed innovative strategies in providing entertainment to circus customers. They noticed that it is important for today circus business to come up with new products which suits customer's mood because customers have been exposed to world through television and internet. So their choices are also very different as compared to circus customer of thirty years before. Therefore, the circus business needs to incorporate these changes into its existing business. The customers have been exposed to traditions of different countries and regions so they will not come to circus for local stuff (Miles, 2008, pp. 123).

Symbol of Circus

The circus has its own symbol which is tent, this symbol was now considered as old fashion and obsolete. These aspects of circus need to be changed so that the customers will be attracted. Cirque du Soleil prefers to introduce new types of tents so that when customers join circus they will feel that this is not obsolete and there is something new on offer. This innovative policy was very much effective because it attracts customers as packaging of the ...