Cirque du Soleil Case Analysis Lana Smith

The Industry 1980’s Traditional circus industry was unattractive.Traditional circus industry was unattractive. Market growth and revenues stagnant.Market growth and revenues stagnant. Competitors were fighting for market share.Competitors were fighting for market share. Little differentiationLittle differentiation

MISSIONMISSION Cirque du Soleil’s mission is to invoke the imagination, provoke the senses and evoke the emotions of people around the world.

Traditional Competition Traditional circuses were trying to surviveTraditional circuses were trying to survive Competing to attain renowned actsCompeting to attain renowned acts Costs rose without significantly increasing revenues.Costs rose without significantly increasing revenues.

Traditional Circus Appeal Awe Clowns Acrobats Trained Animal Performances Family Atmosphere Live Entertainment

Becoming Cirque Eliminations from Traditional Circus –Animals –Vendors –Concession Sales –Low Ticket Cost Lasting Traditions –Clowns –Acrobats –The Big Tent

Human beings create the showHuman beings create the show Clever performances with themeClever performances with theme Outrageous CostumesOutrageous Costumes No AnimalsNo Animals Combination of Circus, Broadway and OperaCombination of Circus, Broadway and Opera What is the Difference?

Financial Implications Decreased Costs Increased Revenue

Analysis S trengths- Unique, Sustainable Advantage W eaknesses- Potential Market Saturation O pportunities- No Limits to Expansion T hreats- Bad Management, Lack of New Talent

Questions? *All pictures came directly from Cirque du Soleil's website