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Blue Ocean Strategy
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CIRQUE DU SOLEIL
CASE ANALYSIS
GEB 5878 Charlotte Busine
Outline
Cirque du soleil Business of Cirque du Soleil SWOT Analysis Keys of success – Strategic decisions Summary
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Cirque du Soleil
Created in 1984 by Guy Laliberté & Daniel Gauthier
Major Canadian entertainment company New 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 continents
2009 = 19 shows simultaneously
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Business of Cirque du Soleil
Dual visions artistic & commercial Highly profitable company Cirque du Soleil’s niche = « adult market for
live entertainment » Recent 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 children
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Business of Cirque du Soleil
Majority of revenues = ticket sales Rest = sponsor partners & concession sales
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Business of Cirque du Soleil
Absence of animals & diminution of risks taken by performers
Reduction in expenditures
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SWOT Analysis
Strengths Unique shows, status of a non-circus show
Leader on the market High quality Original concept, dreamlike themes Strong corporate image & identity
(“sophisticated & new form of entertainment”) Permanent & touring shows Production diversity Absence of animals
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SWOT Analysis
Weaknesses
No permanent show outside the US Important investments Continuity in themes of shows Performers’ anonymity No place for “big name acts”
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SWOT Analysis
Opportunities
Diversify themes Establish permanent shows in other
continents Offer more affordable tickets for children
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SWOT Analysis
Threaths
Competition from opera, dance, and circus shows
Competition from the Pickle Family Circus & Big Apple Circus
Phenomenon “Soleil” becomes blurred
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Keys of success – Strategic decisions
4 strategic decisions Cirque du Soleil’s niche
Adults live entertainment New & innovative concept
reinvent the circus art High quality & sophisticated shows
particular pricing Brand value created by the phenomenon
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Summary
Cirque du Soleil’s concept = revolutionary Good strategic decisions
Creation 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
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QUESTIONS ???
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References
Matt 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.asp
Did you know? Retrieved May 25, 2009, from http://www.cirquedusoleil.com/en/about/faq/faq.asp
Cirque 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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