Evaluation of the IT Alignment in Cirque Du Soleil

Ward and Peppard (2002) have identified that IS/IT strategy formulation and planning will help an organization to gain competitive advantage in the existing market by enabling the organization to develop a flexible and cost-effective technology infrastructure which in turn will lead to the deployment of resources and competencies that are needed to accomplish the organizational goals effectively and efficiently.
Strategic Use of Technology in Entertainment Services
By using the latest technology Cirque du Soleil could develop a new intellectual and dramatic entertainment project that made the company stand out unique. The use of technology has helped the company to reduce its cost structure and the organization could increase the ticket prices beyond the amount charged by the traditional circuses. This also made the organization compete with the Broadway theatre prices. (Chan Kim and Renee Mauborgne, 2005)
Cirque du Soleil
The success of Cirque du Soleil lies in its ability to create a new and compelling product rather than creating a new market. It cannot be said the business of Cirque is an alternative to traditional circus business (Blue Ocean Strategy) but through a product differentiation as advocated by Porter (1980) Cirque competes in the existing market with a brand new product having different characteristics. This makes the product of Cirque unique. The strengths and weaknesses of Cirque du Soleil can be analyzed using a SWOT analysis.
Strengths

  • All the shows produced by Cirque results in profits
  • The organization encourages creativity among the employees
  • Product is a niche one without effective competition
  • Financial soundness supports the competitive strength
  • Good reputation
  • Great marketing efforts resulting in successful shows
  • Use of technology throughout the organization
  • Shows running for longer time periods
  • Talented people recruited from all over the world
  • The organization is creative with support from excellent leadership
  • Great locations
  • Availability of Creative production staff