In 1984, Guy Laliberte and Gilles Ste-Croix with skills in stilt-walking, along with some performers founded Le club de Talons Hauts, and began street performances where they managed into an organized performing troupe. To raise funds for this purpose, Ste-Croix stilt-walked between Baie-Saint-Paul and Quebec City. This attracted the attention of the Quebec Government and it provided the club with the necessary funds of 1.5 million to continue. Following that The Cirque du Soliel was born.
After a difficult start in 1987 they come across the success and never looked back .The company was successful in creating a new form of art by combining circus art, theater and ballet. Subsequently, Cirque also introduced its line of apparel and accessories. About 85 percent of Cirques revenues were from the sale of show tickets and the rest from the sale of audios, videos, books, and licensing agreements for products like T-shirts, jewelry, hats, shoes, masks etc. Apart from touring and permanent shows in places like Las Vegas, Orlando, and Walt Disney World, Cirque had also produced a number of movies and television shows.
From a group of street performers working in a small town near Quebec in 1984, Cirque du Soleil is now a major organization providing high-quality artistic entertainment around the world. The company, with its international headquarters in Montreal, Canada, has 4,000 employees in over 40 countries, including 1,000 artists.
Cirque du Soleil has brought wonder and delight to almost 90 million
spectators in over 200 cities on five continents. The cirque has been an unqualified financial success.
General environment analysis–
Till August 2007, Cirques estimated revenues for the year were more than US$ 600 million with over a dozen shows running across the world at any point of time.
Every show presented by Cirque, was based on a central theme with a supporting storyline, amalgamating different circus styles from across the world.
The shows were presented by more than 1000 performers, who were a part of Cirques 4000 strong work force. Starting from the recruitment of employees till the production of the shows, it had introduced many innovative processes
Cirque was cited as one of the companies to have implemented Strategy by creating demand, by developing a new market space, where competition was non-existent. Instead of being considered as just another circus company in a declining industry, it redefined its market by fusing art and entertainment.
Cirque differentiated itself from the traditional circus in all business aspects. The company created a niche market of live entertainment within the entertainment industry. Rather than providing a product for which demand already existed, it used its innovativeness and creativity to create a demand for live entertainment
The criteria/boundaries/rules for the circus industry that were “taken for granted” for decades included: animal shows, star/famous performers, multiple shows at the same time , and pushing concession sales. Rather than keeping a high emphasis on all the existing rules and then creating new ones, they either eliminated or reduced many of those rules and created a bunch of new ones. In the process, they increased value for their target market while lowering their own costs.
A key thing they did at Cirque de Soleil was that they looked across market boundaries to alternatives to the circus. It ended up being part circus and part theatre. Rather than focus on the market boundaries, they focused on the job the customer was hiring for — in this case, it was adults looking for sophisticated entertainment. Another key thing they did was not targeting the existing market (i.e. children), rather they targeted non-consuming adults. Strategy is all about creating and capturing net new demand by ignoring boundaries defined by traditional competitors.
Mission Statement: Invoke the imagination, provoke the senses and evoke the emotions of the people around the world.
They want their audience to bring imagination, while challenge the senses and bringing out the emotions of people around the world. Their vision is to continually introduce a new and exciting show.
Goal??”The main goal of the company is to be able to produce high quality artistic entertainment to audience on different parts of the globe with different culture. Their aim is to be the number one entertainment provider with over 4000 employees who are professional in the field
Cirque du Soleil-Analysis by Porter??™s Five Forces
Strength: They are introducing and challenging the audience to a unique way of a circus experience. Their use of words with invoke, provoke, and evoking the emotions of people. They start with wanting to appeal to the audience and from there they will provide a show to intrigue and bring passion the performance to everyone. They are focusing on the customer??™s benefits.
Weaknesses: The statement is too vague; you don??™t understand the business they are in. Though it is a powerful sentence it doesn??™t say anything about their organization.
Degree of Rivalry (all four threats combined together)
They are competing against the live entertainment business. Some competing industries such as opera, theatre, and Broadway. They are trying to get to some cities, and having to bid to make it in. Competition is not based on price, it??™s based on the attraction of the audience, drawing in their interest.
Supplier Power ?
Because it??™s such a large organization, Cirque du Soleil would never have the problem of suppliers taking over. There are many other options to get their resources from. Cirque de Soleil would provide so much profit to their suppliers they would not want to lose them as
customer, and therefore keep their prices low. Such as celebrities, communications, productions etc.
Power of Buyers
The media will affect the buyer??™s decision. The buyers are also dependant on where the show is taking place. Buyers are tourists, families, children, in general. Controlling buyers are the most challenging as it is depending on various factors.
1. Professional performance group ?
a. 300 seamstresses, engineer, makeup artists32 talent scouts and casting staff
? b. 20,000 members of Cirque??™s cast, and speak 27 languages
2. Mass of wonderful shows
a. ? Shows offered to audiences is the manifestation of a spirituality
3. Good relationship with theater, and hotel and casino
a. ? partners absorb up to 75% production costs
b. ? transformed a one-tour, one-residence circus company into an
4. Great management teams
a. use creative staff to make company run well
b. focus on creative process and production personnel
5. High profits on shows
? ? a. 600 million per year
1. High cost on management and shows
? a. Maintaining thousands of employees and facilities
? b. High cost to produce an show
2.The price of shows and performances is not affordable to many people
3. Limited locations to have performances
4. Splits about half of its profits with partners
1. Good entertainment environment in Las Vegas
? 2. Wide target audiences
a. different shows attract different audiences from young to old
? 3. Multiple Markets
a. Performances, shows, and a series of shows on TV
? ? ? 4. Few competitors in the same industry
? ? ? 5. Long lives of the exotic shows which can least for 10-12 years
1. Along with the internet develop, more people prefer watching shows
2. People can??™t afford the price due to the economic downside, and high unemployment
Strategic Analysis— majorly includes how the market is moving & how they can bring more value to customers. A dyeing industry is where we see inability to Innovate. But the case study of Cirque-du Soleil a company which stepped in the dyeing Industry like circus, proved that with innovation profits are guaranteed.
Things that they did:
Brought in new elements (music, theater),exceeded language barrier
Raised the bar & expectation of the customer satisfaction, created buyer satisfaction though cost is high
Eliminating the threats (animals, risk acts)
Efficient human resource management internationally
Serving target customer precisely
Recommendation/implementation–The first key competitive advantage of Cirque du Soleil is its huge and professional performance and management group which includes 300 seamstresses, engineers, and makeup artists who have stage lives of 10- 12 years.
Nevertheless, to sustain its ambitious expansion schedule and reputation for continuing to outdo itself, Cirque would have to embrace and cultivate the qualities leaders embody. Cirque would also need to learn how to quickly replicate its high-performing teams.
In order for the company to have efficient expansion approach it is essential that the management should create first a comprehensive and complete marketing opportunity plan to determine their capabilities of the company in the market place where the company wishes to expand, one of the factors to consider Is the situational analysis of the market place.