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 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

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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 Soleils niche = adult market for
live entertainment
Recent increase of product range


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Business of
Cirque du Soleil
Lifecycle strategy
Opening 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 price
Every 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 Soleils 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 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

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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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