Reduce your costs while also offering customers more value. Cirque du Soleil omitted costly elements of traditional circus, such as animal acts and aisle concessions. Its reduced cost structure enabled it to provide sophisticated elements from theater that appealed to adult audiences— such as themes, original scores, and enchanting sets, all of which change year to year. The added value lured adults who had not gone to a circus for years and enticed them to come back more frequently— thereby increasing revenues. By offering the best of circus and theater, Cirque created a market space that, as yet, has no name—and no equals.
3. Write your opinion about Cirque's proposed diversification strategies
I think that Cirque du Soleil should not diversify its business operations. The desire to diversify into hotels, theme parks and luxury resorts is not consistent with the needs of its customer base. Over-extending resources and expanding into other markets will spread their business operations too thinly.
Diversification into other types of product such as complex cirques, spa is also a problem because it defeats the purpose of their sense of belonging.
Diversification is a problem for sense of belonging. Cirque needed to determine whether it would expand and look to build new hotels,complexes and other facilities or continue it’s strategy of successful touring shows. This forced the organization as a whole to face trade-offs.
If Cirque focused additional resources on expansion, it could lose the focus of its alreadyhighly successful circus performances
In conclusion, Cirque overall needs to stay close to the creative values and policies that have made it successful through out the company’s life; the very ideas and values the made it work
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