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 Lalibert & 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 Soleils 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

4 strategic decisions Cirque du Soleils 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 Soleils 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