Cirque du Soleil

(Blue Ocean Strategy)

-By Group 6
 Cirque du Soleil

o Originally composed of 20 street performers in 1984, Cirque du Soleil Entertainment

Group completely reinvented circus arts and went on to become a world leader in
live entertainment.
o Established in Montreal, the Canadian organization has brought wonder and delight
to over 180 million spectators with productions presented in 450 cities in 60
countries.
o Cirque du Soleil Entertainment Group currently employs 4,000 people, including
1,300 artists, who originate from nearly 50 countries.
o On top of producing world-renowned shows, the organization has extended its
creative approach to a large variety of entertainment forms such as multimedia
productions, immersive experiences, theme parks and special events.
Red Ocean vs. Blue Ocean Strategies

Red Ocean Strategy VS Blue Ocean Strategy

Compete in existing market space Create uncontested market space

Beat the competition Make the competition irrelevant

Exploit existing demand Create and capture new demand

Make the value-cost trade-off Break the value-cost trade-off

Align the whole system of a firm’s activities with

Align the whole system of a firm’s activities
its strategic choice of differentiation or low cost
 Three ring Customers mainly
circus,clowns,animal Extremely children and families
acts competitive but was
overall on verge of
decline industry

Raised cost but no Other circuses Buyers had appealing

dramatic change in substitute of
buyer’s value television and
videogames

combine the circus

Cirque du Soleil Emphasized more on
experience through
with adult theater
decreased significant storyline, music
costs common to the ,acrobats and
industry. upgraded seats
Customers mainly
adults who missed  increased value to
circus culture the buyer
 Strategy Canvas

 Blue ocean strategy canvas of Cirque du Soleil vs Ringling Bros and smaller regional circuses:

Cirque du Soleil essentially offered the best of both circus and theater, creating a new
form of entertainment, while stripping away everything unnecessary. In doing so, it
created a new product that made competition with circuses irrelevant.
o Smaller regional circuses are simply lower-cost imitations of the big names. Smaller
circuses compete largely on the same dimensions, but executes less well and
commands a lower price. 
o It cut down on costly expenses that didn’t provide customer value – star performers
and animal shows. 
o Cirque du Soleil’s shows featured similar acrobatic wonderment and thrill as circuses.
o It introduced entirely new elements like high production value and artistry, which
were important to their customers but completely absent from normal circuses.

This strategy canvas clearly shows how Cirque du Soleil offered superior customer
value while lowering certain costs.