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Business Stratgies of Cirque Du Soleil

Various international laws regarding content censorship and audience appropriateness impact the style of shows that are produced. Most of Cirque du Soleil's touring productions are family friendly. A summary table of the general environment analysis can be found in Appendix 1.
             Industrial Analysis.
             The industry environment has a more direct impact on a firm's strategic competitiveness and profit-making potential in comparison to the general environment (Hanson et al. 2011). Cirque du Soleil's industry will be analysed using the Five Forces Model to determine the intensity of competition and profit potential (Hanson et al. 2011). The five forces include threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products and competitive rivalry.
             The threat of new entrants is low to moderate for Cirque du Soleil. It is deemed low because of their ability to achieve a focused strategy enticing wealthier customers and people searching for a premium performance over a regular circus. This takes considerable amounts of financial, physical and intellectual capital to achieve and cannot be easily replicated by regular circus groups. Their strategy of providing a unique experience that is both classy and thrilling, has ensured them a worldwide audience, and secured itself as a premier event in any city it performs in. Cirque du Soleil's reputation provides an advantage over lesser known competitors who find it difficult to target the same audience. It may also prohibit them from performing in the same locations as Cirque du Soleil. For example Cirque du Soleil utilizes Langley Park in front of the Perth Central Business District and Swan River. The ability to promote their performance in such a valuable key location allows both a sense of prestige and the ability to entice the wealthy families and corporations based around the city. In some cities such as Tokyo and New York there are permanent shows throughout the year.


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