1) What are Cirque du Soleil’s key Resources?
2) What are its key Capabilities?
3) How much are they contributing to sustain Cirque du Soleil’s Competitive Advantage?
4) What are in your view Resources and Capabilities that are not critical to sustain such Competitive Advantage and that Cirque du Soleil outsources or could outsource?
I have already answered the first and second one but i am not sure with the third and fourth question.
Answer 1: The analysis of the internal resources of the business is usually carried out by adopting Resource Based View model (RBV). In accordance with this model, the primary resource of the Cirque du Soleil are undoubtedly its human resources. They represent the main intangible asset of the company. These human resources include artists and artisans themselves, the management team, and the whole crew involved in the production. Another key intangible asset is its reputation, image, and brand name that was built throughout the years. Taken together, these intangible assets fit the assumption of the RBV model of immobility since they cannot be easily imitated by the competitors.
Tangible assets are represented by the company’s physical materials. While they are given less importance and mainly assist in the logistical sense, they are still critical for the implementation of these creative shows. Apart from the big international headquarters located in Montreal, Canada, Cirque du Soleil has a range of multi-purpose facilities, appropriate equipment, and studios. In relation to financial capital, it has an approximate $1 billion of annual revenue.
As it is discussed below, the special capabilities of the Cirque du Soleil’s organizational structure and underlying processes, explain its uniqueness and support second RBV assumption on resource heterogeneity.
Answer 2: Having identified the key resources at Cirque du Soleil’s disposal, the competencies/capabilities that allow the company to make the capital of these resources should be explored.
With respect to it, innovation is emphasized above all others. It engages several forms of art including traditional circus performances, theater and ballet. In addition, integrating the technological advancements to promote innovation has been one of the main strategies that is sought by Cirque du Soleil. Moreover, this innovative approach is further elaborated due to the fact that Cirque du Soleil is willing to cooperate with different cultures around the globe. It possesses the datasets of the international artists as well as network of the recruitment agents. Because of this combination, the shows bridge the international barriers as well as transcends cultural differences. Creation of the universal language that is entrenched in its shows, attracts wide audiences and receives international recognition. However, this collaboration couldn’t have been achieved without the company’s other capability. Harnessing and nurturing these talents through programs, exhibitions, and charity work is an integral part of a company’s strategy.
Besides, Cirque du Soleil serves as an exceptional example of corporate social responsibility. 3 The CSR strategy of Cirque du Soleil is based on four main pillars of talent, community, procurement & partnership, and environment. First, it ensures the healthy and safe working conditions for its employees. Second, partnerships and production are made in accordance with quality and service, as well as sustainability commitment of the partners and suppliers. Third, all the processes of operations, and production are designed to reduce the environmental impact. For example, it is stated that greenhouse emissions per show witnessed a 53% decline in 2018, compared to the last five years.