Cirque Du Soleil Case
STRATEGIC MANAGEMENT
CIRCUS CASE B Jorge Tarzijan
Questions: Cirque du Soleil
1. Is the business model of Cirque Du Soleil different from the business model of traditional circus? Why? 2. What are the main differences between the choices selected by Cirque Du Soleil and the traditional circus? 3. When you compare Cirque du Soleil with the conventional circus, which are the elements kept by Le Cirque? Which ones were downplayed and which ones were played up? 4. How does Cirque du Soleil create superior profits? 5. What are the main learning points of this group of cases?
BACKGROUND INFORMATION. ANNUAL REVENUES: Feld Entertainment vs. Cirque du Soleil
700
Annual Revenue (US$ Millions)
600 500 400 300 200 100 0 1995 1996 1997 1998 1999 2000 2001
In 2009, Cirque Du Soleil revenues were U$ 810 million (approx). Feld Entertainment has bought other companies, thus comparisons are not very meaningful anymore.
Is the business model of Cirque Du Soleil different from the business model of traditional circus? Why? ELEMENTS OF THE BUSINESS MODEL (DIFFERENT CHOICES?)
Traditional Circus
Star Performers Seasonal One Show Child Audience Animals Unrelated Acts Low-Medium Price High Push for Concession Sales Emphasis on Fun/Thrills Functional Viewing Environment 3 Ring
Cirque du Soleil
Non-Star Performers Year round Multiple Productions Adult Audience No Animals Story/Theme High Price Profits from Tickets Emphasis on Artistry Refined Viewing Environment One Ring
EXAMPLES OF ELEMENTS ELIMINATED BY CIRQUE DU SOLEIL
Animal shows – Easier logistics, no smell, no need for animal trainers, costs down (security and other), no problems with animal activists. Star performers – Ringling Brothers attracts viewers with big name acts (“greater Sebastian”) – Cirque du Soleil’s performers remain anonymous Aisle concessions – Viewers not distracted – Eliminates the ‘huckster’ image of traditional circus
EXAMPLES OF ELEMENTS CREATED BY CIRQUE DU
CIRCUS CASE B Jorge Tarzijan
Questions: Cirque du Soleil
1. Is the business model of Cirque Du Soleil different from the business model of traditional circus? Why? 2. What are the main differences between the choices selected by Cirque Du Soleil and the traditional circus? 3. When you compare Cirque du Soleil with the conventional circus, which are the elements kept by Le Cirque? Which ones were downplayed and which ones were played up? 4. How does Cirque du Soleil create superior profits? 5. What are the main learning points of this group of cases?
BACKGROUND INFORMATION. ANNUAL REVENUES: Feld Entertainment vs. Cirque du Soleil
700
Annual Revenue (US$ Millions)
600 500 400 300 200 100 0 1995 1996 1997 1998 1999 2000 2001
In 2009, Cirque Du Soleil revenues were U$ 810 million (approx). Feld Entertainment has bought other companies, thus comparisons are not very meaningful anymore.
Is the business model of Cirque Du Soleil different from the business model of traditional circus? Why? ELEMENTS OF THE BUSINESS MODEL (DIFFERENT CHOICES?)
Traditional Circus
Star Performers Seasonal One Show Child Audience Animals Unrelated Acts Low-Medium Price High Push for Concession Sales Emphasis on Fun/Thrills Functional Viewing Environment 3 Ring
Cirque du Soleil
Non-Star Performers Year round Multiple Productions Adult Audience No Animals Story/Theme High Price Profits from Tickets Emphasis on Artistry Refined Viewing Environment One Ring
EXAMPLES OF ELEMENTS ELIMINATED BY CIRQUE DU SOLEIL
Animal shows – Easier logistics, no smell, no need for animal trainers, costs down (security and other), no problems with animal activists. Star performers – Ringling Brothers attracts viewers with big name acts (“greater Sebastian”) – Cirque du Soleil’s performers remain anonymous Aisle concessions – Viewers not distracted – Eliminates the ‘huckster’ image of traditional circus
EXAMPLES OF ELEMENTS CREATED BY CIRQUE DU