Resource Based View

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Resource Based View Resource based view determines strategic resources available to Cirque du Soleil. Here we can categorized their resources into three types: tangible, intangible and human resources. Tangible assets comprise of its commendable financial resources (internal cash flows, external borrowings) and physical resources (Headquarters on 75000 sq m land with housing facilities, shops and studios; props, equipment etc.). The firm’s reputation and brand name are its greatest intangible resources along with the creative heads. Human resources are the heart and soul of the company and the main rationale behind its success. Cirque’s operations are highly labour intensive and around 2500 employees from 40 different nationalities work for them which include artists, trainers, support staff, craftsmen, administrative officers etc. This firm has used its resources to enhance its capabilities to be more competent. First of all it’s effective management of the well diversified human resources is decentralized. This integrated network of people is not achievable overnight or can be done within a short span of time. Moreover, Cirque has the capability of utilizing its huge plant area in producing everything in house and depending very little on external sources. This makes the firm independent and internally strong. Last but not the least, creative ability of its people to retain the artistic aesthetics of the shows through innovations is an asset to the company. According to the VRIN model, Cirque’s resources and capabilities are without any doubt valuable but not all of them are scarce or hard to imitate. Nonetheless, Cirque du Soleil has the first mover advantages. The reputation, experience, knowledge, skills and relationships that Cirque Du Soleil has gained in the comparatively fresh market is on their advantage and difficult to attain. It could be concluded that the nature and character of its resources and capabilities lie somewhere in between medium to slow cycle diffusions.

Transcript of Resource Based View

Page 1: Resource Based View

Resource Based ViewResource based view determines strategic resources available to Cirque du Soleil. Here we can categorized their resources into three types: tangible, intangible and human resources.

Tangible assets comprise of its commendable financial resources (internal cash flows, external borrowings) and physical resources (Headquarters on 75000 sq m land with housing facilities, shops and studios; props, equipment etc.).

The firm’s reputation and brand name are its greatest intangible resources along with the creative heads.

Human resources are the heart and soul of the company and the main rationale behind its success. Cirque’s operations are highly labour intensive and around 2500 employees from 40 different nationalities work for them which include artists, trainers, support staff, craftsmen, administrative officers etc.

This firm has used its resources to enhance its capabilities to be more competent. First of all it’s effective management of the well diversified human resources is decentralized. This integrated network of people is not achievable overnight or can be done within a short span of time. Moreover, Cirque has the capability of utilizing its huge plant area in producing everything in house and depending very little on external sources. This makes the firm independent and internally strong. Last but not the least, creative ability of its people to retain the artistic aesthetics of the shows through innovations is an asset to the company.

According to the VRIN model, Cirque’s resources and capabilities are without any doubt valuable but not all of them are scarce or hard to imitate. Nonetheless, Cirque du Soleil has the first mover advantages. The reputation, experience, knowledge, skills and relationships that Cirque Du Soleil has gained in the comparatively fresh market is on their advantage and difficult to attain. It could be concluded that the nature and character of its resources and capabilities lie somewhere in between medium to slow cycle diffusions.