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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. 2/18. Cirque du Soleil. Created in 1984 by Guy Laliberté & Daniel Gauthier
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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 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 = « adultmarket for live entertainment » • Recentincrease of product range 5/18
Business of Cirque du Soleil • Lifecyclestrategy 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 4 strategicdecisions • Cirque du Soleil’s niche Adults live entertainment • New & innovative concept reinvent the circus art • High quality & sophisticated shows particularpricing • 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
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, fromhttp://www.cirquedusoleil.com/en/about/intro/intro.asp • Didyou know? Retrieved May 25, 2009, fromhttp://www.cirquedusoleil.com/en/about/faq/faq.asp • Cirque du soleil. Picturesretrieved May 25, 2009, fromhttp://www.cirquedusoleil.com/ • SwotAnalysis. Retrieved May 25, 2009, fromhttp://www.netmba.com/strategy/swot/ 18/18