Business project development in new destinations is an exercise that involves a substantial number of considerations. Turkey is one of the countries in which Cirque du Soleil has never staged its shows before. Therefore, this presents new business opportunities for the company.
At the same time, the country presents challenges for the company. The challenges resonate from the fact that the company is likely to be exposed to constraint and costs of conducting activities in a new environment (Jobin & Talbot 2011).
Louse Murray is making a significant step by encouraging the company to stage its activities in Turkey. First of all, the company has done a marketing survey which is a crucial step of learning the new business destination.
Pointers from the marketing survey indicate that the company can make substantial net financial gains. The economy of Turkey has recovered from the financial problems it has been facing recently.
The recovery of the economy denotes an improved trend of expenditure which is positive for the company. The other supportive point is that Turkey fits into the strategic plan that has been prepared by the company (Jobin & Talbot 2011).
The decision of the company to stage their activities in Turkey is based on strong analytical grounds. The analytical reports made by key institutions have formed the basis on which the company has made a decision to carry on with the investment project in Turkey.
Benefits
- There are numerous benefits for the company if it implements the investment project in Turkey. The first benefit is that Turkey is a new market and the successful entry into the market can result in attractive opportunities within the new market.
- The capability of the company to recycle the materials used during single shows is also an advantage to the company. Costs of operation are minimized leading to a swell in profit margins.
- Another benefit that accrues from the entry in Turkey by the company is the consolidation of learning. Turkey is a new area of operation by the company and, therefore, numerous learning points can be derived from the experience of the company in Turkey.
Risks
- Initial costs of entry into new markets are usually high and sometimes become a burden to companies. The company will be forced to spend enormous sums of money on logistics, equipment and other resources.
- The other risk which the company faces is the high cost of labor upon the first operation in Turkey as well as the fear of not gaining the desired demand.
Adopting of a disciplined approach by Cirque du Soleil
It is advantageous for a company to consider several possibilities before deciding to implement a certain projects which helps in limiting costs. For Cirque du Soleil to go on with the show in Istanbul, it has to choose the most promising partners that would help in the formation of sustainable business practices.
Such practices capture all aspects that emanate from the new business environment. Each partner helps the company in handling issues. Cirque du Soleil can effectively partner with the Ministry of Culture and Tourism in Turkey.
This will aid the company to familiarize with the new environment of operation. The Ministry will also aid the company in identifying the best places in which to stage the shows.
Under this partnership, the company is forced to share most of its profits with the Ministry leading to a reduction in returns (Jobin & Talbot 2011).
The other partnership, which is worth for the company is the collaboration with the Turkish Television and Entertainment Society. This will help them in marketing the event across the country.
The benefit that is derived from this cooperation is that the event will gain publicity thus attracting more people (Jobin & Talbot 2011).
Reference List
Jobin, M & Talbot, J 2011, “Tour planning at Cirque du Soleil”, International Journal of Case Studies Management, vol. 9 no. 2, pp. 1-32.