CIRQUE DU SOLEIL CASE ANALYSIS

GEB 5878 Charlotte Busine

Outline Cirque du soleilBusiness of Cirque du SoleilSWOT AnalysisKeys of success Strategic decisionsSummary

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Cirque du Soleil Created in 1984 by Guy Lalibert & Daniel GauthierMajor Canadian entertainment companyNew approach of the circus called New American Circus mix of circus arts & street entertainment wild costumes, magical lighting & original music

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Cirque du Soleil: Facts

4000 employees worldwide+/- 90 millions spectators> 200 cities on 5 continents2009 = 19 shows simultaneously

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Business of Cirque du Soleil Dual visions artistic & commercialHighly profitable companyCirque du Soleils niche = adult market for live entertainmentRecent increase of product range

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Business of Cirque du Soleil Lifecycle strategyOpening in Montreal

North American Tour

European & Asian tour

Permanent shows

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Business of Cirque du Soleil Pricing strategy- Huge success shows generally sold out- Sophisticated entertainment higher quality

Soleil tickets = higher priceEvery seat sold at full price no discount or free entrance for children7/18

Business of Cirque du Soleil Majority of revenues = ticket sales Rest = sponsor partners & concession sales8/18

Business of Cirque du Soleil Absence of animals & diminution of risks taken by performers

Reduction in expenditures 9/18

SWOT AnalysisStrengthsUnique shows, status of a non-circus show Leader on the marketHigh qualityOriginal concept, dreamlike themesStrong corporate image & identity(sophisticated & new form of entertainment)Permanent & touring showsProduction diversityAbsence of animals

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SWOT AnalysisWeaknesses

No permanent show outside the USImportant investmentsContinuity in themes of showsPerformers anonymityNo place for big name acts

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SWOT Analysis Opportunities

Diversify themesEstablish permanent shows in other continentsOffer more affordable tickets for children

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SWOT Analysis Threaths

Competition from opera, dance, and circus showsCompetition from the Pickle Family Circus & Big Apple CircusPhenomenon Soleil becomes blurred

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Keys of success Strategic decisions 4 strategic decisionsCirque du Soleils niche Adults live entertainmentNew & innovative concept reinvent the circus artHigh quality & sophisticated shows particular pricingBrand value created by the phenomenon

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Summary Cirque du Soleils concept = revolutionary Good strategic decisionsCreation of a phenomenonRapid growth over the 25 years of existence

Cirque du Soleil = success story highly profitable company

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Thank you for your attention 17/18

QUESTIONS ???17/18

ReferencesMatt Williamson, Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment, INSEAD-EAC, March 2002.About Cirque du soleil. Retrieved May 25, 2009, from http://www.cirquedusoleil.com/en/about/intro/intro.aspDid you know? Retrieved May 25, 2009, from http://www.cirquedusoleil.com/en/about/faq/faq.aspCirque du soleil. Pictures retrieved May 25, 2009, from http://www.cirquedusoleil.com/ Swot Analysis. Retrieved May 25, 2009, from http://www.netmba.com/strategy/swot/

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