Recommendations of Innovation At Cirque Du Soleil Case Solution

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On the basis of above internal and external analysis of the business along with the examination of various options, the business is advised to think about alternative 3. As alternative 3 would allow the business to expand in international markets without any decrease in its regional earnings and any wear and tear of its market position. The business could pursue alternative 1 which would enable the business to focus on prospective worldwide markets rather than the regional markets however as the company is highly reliant on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the significant decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Innovation At Cirque Du Soleil Case Analysis Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a good option for increasing the worldwide existence of the company. However, the closing of domestic stores could extremely affect the revenues of the company as above 90% of its stores lie domestically and closing those shops would eventually lower the revenues of the company. The company has a long term market position in United States which can not be generated quickly in the brand-new markets. The choice would assist the business to broaden in international markets along with the removal of issues raised in its local markets associated with its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Boost in profits from international markets.
• Removal of concerns connected to variety.
• Earnings diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competition.
• Distinctions in cultures might led to a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Innovation At Cirque Du Soleil Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position an extreme hazard to the market share of company. In this scenario the business might think about presenting Click and Recommendations of Innovation At Cirque Du Soleil Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Individuality
• Removal of the excellent store experience.
• Risk of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the company might think about, is to broaden towards the worldwide markets without closing its domestic shops that adds to the major part of revenues of the company. The pros and cons related to Alternative 3 are offered below;

Pros:

• Reducing competition threat
• Access to the world markets
• Enlarging consumer base
• Large Revenues
• Exploration of brand-new global markets.
• Increase in profits from global markets.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of issues associated with variety.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to acquire market share.



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