After reading the case – please type in your answers of around 200 words for each of the 4 questions listed below.
PLEASE HAVE THE QUESTION ON THE TOP AND LET YOUR ANSWER FLOW FROM THAT – AND COMPLETE YOUR ANSWERS FOR THE CASE IN NOT MORE THAN 2 PAGES SINGLE SPACE!
1. Cirque du Soleil was able to gain and sustain a competitive advantage for many years. Why was Cirque du Soleil successful in the first place (while most other circuses barely survive)?
2. A recent report by OSHA concludes that Cirque performers suffered a high number of injuries that required medical attention. One investigation found that Cirque’s signature show had 56 injuries per 100 workers, which is four times the injury rate for professional sports teams, according to the Bureau of Labor Statistics. What can Cirque’s management do to address the safety concerns of its performers? With more safety measures and less risky shows, do you think Cirque du Soleil will lose its differentiated appeal to audiences? Why or why not?
3. Which factors contributed to Cirque du Soleil losing its competitive advantage, and as a consequence led to a 50 percent drop in its valuation? Look at both external and internal factors.
4. In the search for a new blue ocean, Cirque is now pursuing a strategy of diversification. What kind of diversification opportunities could Cirque pursue with its most recent acquisition of the Blue Man Group? Cirque’s CEO evaluated the Blue Man Productions acquisition as follows: “It’s a big, big shift, and it has been supported by the Blue Man Group. What it means is that now, we’re no longer only a circus company, but now, we’re going to become a global leader of entertainment. That’s the goal we are pursuing.” Do you think Cirque can become a “global leader of entertainment.” Hint: Fosun, one of Cirque’s owners, is keen to see a stronger presence of Cirque in China.
Please avoid using “gobbledegook” (incomprehensible or pompous jargon of specialists; specialized technical terminology characteristic of a particular subject), and you don’t need to use other references in this assignment. Just make sure that the answers to each question are practical and specific enough. ty!
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