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 = « 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 Soleil’s 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 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
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