Enterprise Strategy and IS at Cirque du Soleil - Case Study Example

CASE ANALYSIS ON IT AT CIRQUE DU SOLIEL Introduction In modern times, technological advancements have been the cause of success of most business that are establishing with the intention of creating and consolidating their market share in the ever-changing business environment. It is important to note that the customers’ tastes and needs have been changing drastically, following the need to use products and services that are in tandem with these changes. For this reason, it is important to realize that the new technological advancements put new demands on most companies and business organisations, offers new opportunities for business and improves the different market activities as well as the products and services being manufactured. One of the best examples of technological developments is the reliance on information technology in various business organisations. Many information technologies have been devised in order to assist in the different needs that most companies seem to have in the course of their activities. Some of these technologies enable the consumers that are geographically separated to effectively share messages and databases, which are copied and sent instantly to different recipients. Many companies rely on information technology in order to make awareness for the products and services they make in a manner that is deemed to be fast and cost effective compared to when they would have done the same by moving physically to their customers. In the same way, many consumers have continued to enjoy the ability to interact with these companies, managing to order for their goods at their convenience, making payments easily and following their products on transit until they get them. This paper examines the influence of information and technology at Cirque du Solie, looking at how the company can use this innovation to improve their performance and market share. Part One Cirque du Soleil – Company Background Cirque du Soleil, which is headquartered in Montreal in Canada, was established in 1984 by people that were actively involved public entertainment (Richard, Pinsonneault & Croteau 2012, 2). They were led by Guy Laliberte and Daniel Gauthier who were motivated by the need to reinvent the idea of circus, which had not yet emerged in the entertainment scene by 1800s. The critics and audiences were hugely won by the first show that was made by Cirque du Soleil. This show was very dramatic and quite different from traditional circus that had been common before that time. In this show, the participants wore nicely decorated costumes, had modern and original music, featured different dramatical and theatrical elements with no animals it. Following the prominence of this show, Cirque du Soleil increased its prominence and expanded rapidly. The company made several trips in Canada including Quebec and many other large cities, displaying their skills and talents. In 1987 (Richard, Pinsonneault & Croteau 2012, 5), Cirque made performances in California went to Europe and Japan in 1990 and 1992 respectively. Later, the company’s success became prominent, making it attract various prominent personnel including Danielle Savoie, who was employed to become its vice President. After employing this vice president, the company became highly successful, employing more than 2,000 people (Richard, Pinsonneault & Croteau 2012, 6). Enterprise Strategy and IS at Cirque du Soleil Instead of making an automatic process, the function of IT at the time of Danielle Savoie was supporting knowledge management at the company in the process of capturing, leveraging and transferring knowledge across the processes and projects. In order to help in the integration of all data from different activities, which is an important contribution to the process of knowledge management and information technology, design, implementation as well as the improvement of the cirque memory (Demetriades 2003, 65). Cirque memory can be accessed online in selected five languages. The online platform is created in such a way that in has a series of special modules like Open Eyes, make-up application, costume memory among others (Pour 2005, 32). This means that the company has managed to created a reliable online presence through the establishment of its electronic documents management system. By using information tehcnology in its work practices, Cirque du Soleil has effecively created reliable strategic value. Staregic value as used in most businesses refers to the extent to which certan actions or planned actions are important in relation to the things that the company wants to achieve. For instance, At Cirque du Soleil, strategic value has been established with the development of its electronic document management system, which enhances its ability to manage its documents and other important data effectively. Secondly, the process of employing enough and reliable workers means that the company can handle many of its clients that are increasing with its expansion. Thirdly, Cirque du Soleil has created many offices to handle and manage its expanding activities, which places it in the best position to manage its expansions and diverse activities. In this case, it can be deduced that the inculcation of information technology and related systems have been essential in ensuring that the company creates and consolidate its market share, folowing a good market acceptance. The importanc eof information systems at Cirque du Soleil Information systems have been essential in ensuring that Cirque du Soleil reaches many of its clients in its expansion startegies. The company has effectively managed to create awareness about its circus activities through establishment of a website and other aspects of social platforms presence. It is important to note that information systes have helped many of the activities of the company, which can be seen to be ill-structured. For instance, the company does not have proper product distribution and advertisement platforms and mechanisms, in this case, the use of information systems has played a huge role in ensuring that people can learn about the company and attend its shows where they are being held. Porters Five analysi of the company According to the Portes Five analysis, Cirque du Soleil needs to ensure that it works on most of its management and advertisement strategies in order to try and remain competitive in the business environment that has many new businesses joining to make profits and consolidate their market share. Industry Rivalry It is important to realize that in modern times, the liberalization of business activities as well as the concept of globalisation has opened the way for new businesses to join the circus industry, many of them are using information systems to create their awareness and reach many people through live shows and proceedings online. However, the establishment of information systems at Cirque du Soleil means that the company has placed itself in a better position to take on this challenge and others emerging from the business environment. Cirque du Soleil has put up reliable systems through which it can store and manage it information. For this reason, it can be said that is development has made it able for the company to position itself adequately to compete with other companies joining in the same industry. However, it is important to note that with globalisation, the company has a responsibility of ensuring that it consolidates its strategies by employing people that are well conversant with the management of this system in order to be successful. Bargaining power of Buyers The establishment of information systems and other related innovations mean that Cirque du Soleil can reach many people and invite them for shows being held in different places. By use of information systems, buyers can easily engage the company effectively in making inquiries, payments and other important features needed for the success of the company. By creating this value, it will make it easy for the company to bargain with its clients, who in most cases want to see and experience the value of their money. The use of the online platform and the website mans that the company has managed to increase its presence, which is an important step towards ensuring that it reaches its clients and sells its products and services Threats of new entrants Currently, may new companies have realized that entertainment is a paying industry whenever a business has proper and reliable strategies and methods. This has seen many companies joining the industry using technologies that enhance their reach to clients. Following this understanding, Cirque du Soleil has managed to use the online platform effectively in ensuring that it keeps abreast of the threats posed by these new entrants in the growing industry (Schwalbe 2000. 43). The company can use its website and other online tools in assessing its performance and acceptance in the market. This means that with such strategies, the company will be least troubled by these new entrants because it has created reliable business development and management systems. The responsibility of consolidating its systems and approaches now lies on the company. Threat of substitutes Here, the concern is whether buyers and consumers of the company products can resort to using other forms of entertainment in case of any disappointments from the company. By using the online systems it has created, the company will effectively assess new products being created by other companies that can affect the tastes and preferences of its clients. Through its online systems, Cirque Du Soleil can manage to know other entertainments that people seemingly prefer and create ways of adding value to their activities in order to sustain their market share (Preston 2001, 34). In this case, information systems can be said to be critical to the success of the company. Bargaining power of suppliers In this case, suppliers mean, the people offering the services and products. Cirque du Soleil has managed to position itself effectively towards dominating the industry in case other entrants joining the industry do not have a major influence on its market share. The creating and use of information systems means that the company has effectively managed to attract many clients in using its services. The company can effectively control prices for people buying its products and attending its shows at a rate that does not exploit them to prefer substitute products as described above and does not leave the company to receive marginal loses. This means that by ensuring that clients get the value of their money, Cirque du Soleil can effectively dominate the market both for the short and long haul. How information systems created competitive advantages at Cirque du Soleil First, it is important to realize that the creation of the website has been an important step in the process of enhancing the company’s market share. The website had enabled the company to make en effective marketing to all parts of the world. as noted earlier, the entertainment industry has really grown, which means that many people are looking for different ways in which they can enjoy their time. The creation of the company website has meant that Cirque du Soleil can access many customers effectively by posting their shows online for people to follow. Additionally, the company has used the website in making advertisements about its programs and events. In many businesses, the ability to have effective systems of creating awareness to clients about the company and its progress is important towards creating and sustaining the market share. In this case, Cirque du Soleil has gone a step ahead by creating this system in order to stay ahead of the park as far as the growth and expansion and of its market is concerned. Another important aspect that can be noted from the information systems at Cirque du Soleil is the inn ovation of the intranet. This technology has been another important milestone that has enhanced information sharing at the company. Through the intranet technology the company has made possible for staffs, which are distributed across the world to effectively share information from the company and make their contributions about some of the creativity that can be included in the entertainment. Through the intranet, the company Vice president has openly said that company employees have been invited to make and share their discoveries and creativity under the heading created as “Open Eyes.” The vice president explained that this development will enable the company to stay ahead of the competition in terms of artistic trends. Part Two Future IS Strategies at Cirque du Soleil Going into the future, Cirque du Soleil needs to ensure that it comes with effective ways in which they can rely on information systems to enhance their competitive advantage in the entertainment industry. The company’s vice president, being the person to guide the company in the path of this success will have to spearhead the company’s research into how it will leverage its position in using information systems for its success and development. One of the things that the company should know is that most companies that are creating success in their particular business activities are those which rely on effecting technologies. For this reason, the company needs to ensure that it uses the information systems to have an effective understanding of the market trends so that it can respond to them effectively (Chaney 2009, 28). This includes creating social media platforms from where they can actively engage their clients to get their views and perspectives concerning circus and other artistic aspects. Investing in market research will ensure that the company keeps abreast with the changing customers’ tastes and preferences including many other features that can influence their market share. However, the company needs to ensure that it tackles some of the challenges that may emerge in the course of kits operations, some of which are discussed below. Competition In these modern times, the rate of competition in business has gone a notch here in almost all industries. Most companies are using information systems in order to reach customers, most of whom are located in different geographical positions. Competition can play to the company’s advantages if it will understand the strategies used by competitors and devise strategies and methods to counter those systems. In order to counter this competition, Cirque du Soleil, will need to use its information systems established in order to create an effective market research that will continually help it keep abreast with changes in the market. Additionally, the company will have to dig further and design innovations that will bring in more value to their services to attract and retain customers; this will include simplifying payment systems, creating a platform of effective collaboration and interaction with clients among others. Changing technology One of the resources that are sometimes highly liquid in terms of durability is technology. Technology keeps on changing on a daily basis; many companies are continually being established, which are doing their best to create technologies that enhance business activities. In this case Cirque du Soleil needs to understand this attribute of technology as it walks into the future. What the vice president will need to do is to ensure that his I.T experts keep learning about technology and how it influences its business activities. In this case, the experts will be in a position to understand the changing trends as effective information systems are concerned (Friedrichsen 2013, 43). The ability to remain ahead among its competitors in terms of information systems and work strategies will be an added advantage to Cirque du Soleil. Changing business environment In many ways, the business environment in many countries is very dynamic. First, the economic environment, which is critical to the company’s financial performance, cannot be easily predicted. The same happens for the social and politico-legal environment, without effective awareness of these changes. In order to tackle the challenge of this changing business environment, just like for the above case, the Vice president will have to invest heavily in reliable technologies that will help it predict some of the likely changes in the social, political and economic environment. Another important aspect in this strategy will require the company to create and nurture a harmonious relationship with the governments in the respective countries in order not to be in conflict with such issues. How Cirque du Soleil can use social media for their competitive advantage Social media in businesses has been a good tool used in sharing content and other kinds of information; however, it is important to realize that this is not the only benefit that the technology offers for business activities. Many businesses have been discovering how bets they can use these technology in order to create and consolidate on their respective market position (Israel 2009, 24), some of which Cirque du Soleil can use in its business operations as discussed below. Knowing more about the particular target audience One of the keys to success for Cirque du Soleil is knowing about its particular audience. The use of social media enhances this important step, enabling a company to know more about its target group (Qualman, 2009, 76). By using such tools as facebook among other social media the company will be better placed to understand such things as language, tastes and preferences among other things that will influence its products and services for effective returns on its investments. Targeting audiences effectively Geo-targeting is an important process that enables a company to send messages to specific audiences depending on their particular locations. Social media contains tools that a company can use in managing this important task (Schwalbe, 2000, 54). For instance in Hootsuite, Cirque du Soleil can effectively target its audience based on their location, gender, age, relationship status among other important parameters. For this reason, the use of social media will be very helpful in helping the company to strategize its communications to attract and sustain its clients. Additionally, by targeting specific customers, the company will manage to create certain niches and consolidate their market share through encouraging and analyzing their feedback (Lujan 2013, 34). Additionally, it is important to realize that social media will be a better way for the company to engage its clients in market research, which will help it understand some of the important market trend and patterns, which may influence its products and services. Conclusion In conclusion, it is important to appreciate that information technology plays an integral part in ensuring that companies create and consolidate their market share. Cirque du Soleil, through its activities can agree to the fact that information systems have given it a cutting edge over its competitors by enabling it create the necessary value to their business. Besides creating reliable systems by which they can undertake advertising, information systems cut down operating costs by and saving office space following the use of online document management systems. Additionally, items and other kinds of information stored in the online systems can be accessed at any place on the globe, something that enhances management for the company. In this case, the company can be said to be look forward for a bright future full of management efficiencies that will see it create and consolidate their market share. Bibliography Demetriades, D. 2003. Information technology. Oxford University Press, Oxford. Chaney, P. 2009. The digital handshake seven proven strategies to grow your business using social media. Wiley & Sons, Hoboken, N.J. Friedrichsen, M. 2013. Handbook of social media management value chain and business models in changing media markets. Springer, Heidelberg. Israel, S. 2009. Twitterville: How businesses can thrive in the new global neighborhoods. Portfolio, New York, N.Y. Lujan, M. 2013. Social media in strategic management. Emerald, Bingley, UK. Pour, M. 2005. Encyclopedia of information science and technology. Idea Group Reference, Hershey, PA. Preston, P. 2001. Reshaping communications technology, information and social change. SAGE, London. Qualman, E. 2009. Socialnomics: How social media transforms the way we live and do business. Wiley, Hoboken, N.J. Richard S, Pinsonneault A & Croteau A. M. 2012. Information Technology at Cirque de Soleil: Looking Back, Moving Forward. International journal of case studies in management. Vol 10, no. 4. 1-13. Schwalbe, K. 2000. Information technology project management. Course Technology, Cambridge, Ma. Read More