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 2/18

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” 3/18

Cirque du Soleil: Facts 4000 employees worldwide +/- 90 millions spectators > 200 cities on 5 continents 2009 = 19 shows simultaneously 4/18

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 5/18

Business of Cirque du Soleil Lifecycle strategy Opening in Montreal North American Tour European & Asian tour Permanent shows 6/18

Business of Cirque du Soleil Pricing strategy - Huge success  shows generally sold out - Sophisticated entertainment  higher quality Soleil tickets = higher price Every seat sold at full price  no discount or free entrance for children 7/18

Business of Cirque du Soleil Majority of revenues = ticket sales Rest = sponsor partners & concession sales 8/18

Business of Cirque du Soleil Absence of animals & diminution of risks taken by performers Reduction in expenditures 9/18

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 10/18

SWOT Analysis Weaknesses No permanent show outside the US Important investments Continuity in themes of shows Performers’ anonymity No place for “big name acts” 11/18

SWOT Analysis Opportunities Diversify themes Establish permanent shows in other continents Offer more affordable tickets for children 12/18

SWOT Analysis Threaths Competition from opera, dance, and circus shows Competition from the Pickle Family Circus & Big Apple Circus Phenomenon “Soleil” becomes blurred 13/18

Keys of success – 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 14/18

Summary Cirque du Soleil’s concept = revolutionary Good strategic decisions Creation of a phenomenon Rapid growth over the 25 years of existence Cirque du Soleil = success story  highly profitable company 15/18

Thank you for your attention 17/18

QUESTIONS ??? 17/18

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/ 18/18