Strategic Business Information Systems - Cirque du Soleil's Essay

Strategic Business Information Systems - Cirque du Soleil's Information Technology Initiatives - Essay Example Both the strategies can be approached narrowly or broadly and in either case there is the third viable competitive strategy that is ‘focus’. (12manage.com) 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. By using 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) The success of Cirque du Soleil lies in their 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. Cirque du Soleil is able to have distinct competitive advantageous position due to three fundamental reasons. They are: (i) Product differentiation advantage – by employing innovative production techniques the organization is able to make shows that evoke awe, wonder, inspiration and reflection among the customers, (ii) Niche competitive advantage – the production of Cirque