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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