Competitive Advantage

In our attempt to assess competitive advantage raised as a result of a firm's internal organization, we take on the case of the globally renowned performing arts company Cirque du Soleil.The ability with which the firm continues to amaze audiences can be attributes to its source of competitive advantage that arises due to its various resources, capabilities and core competencies.

Resources:

A firm's resources consist of the tangible and intangible inputs to the production process.

(1) The very product that Cirque manages to provide audiences is a key resource. For instance, from its very inception the founders were able to 'repackage' the idea of a circus in a contemporary way in order to captivate audiences. However it is not just a modern circus but a mesh of opera, theatre and much more that facilitates the provision of a unique, scintillating product. This unique capability has subsequently led to 37 million people having seen Cirque shows in over 90 cities worldwide and enabled each show to be a raging success.

(2) Furthermore, this leads to the development of reputational resources that Cirque benefits from. The firm was established in 1984 and one of the reasons it continues to create hype till date is due to its sheer brand power that enables it to continually attract audiences.

(3) It is important to note that the true essence of this brand power has been generated due to the ability to constantly innovate whether artistically, in terms of, music, dance and acrobats, or commercially.

(4) Another can be attributed in terms of the performers, the human resource that Cirque hires. They are referred to as 'jewels and raw diamonds' and are carefully picked and then trained.

(5) To further add on the previous point, it is important to recognize that these performers face a certain level of risk when they commit to learning the technical skill involved with the acrobats. The potential for injury would be a deterring factor; however the management at Cirque ensures that the performers are well taken care of.

(6) Cirque's other human resources such as its diverse and highly skilled employees, costume designers and suppliers further add to their internal strengths as each task is done with precision and care.

(7) Aside from human resources, Cirque prides itself in its physical resources as well.