Cirque Du Soleil

Case Description - Blue Ocean - Overview of circus industry

Main circus elements - inside a tend or large arena; - equestrian acts, clowns, acrobat, animals. Main changes in circus industry (on the stage of development) - changing society interests; - competition from increasingly available TV, movies; - increasing in the costs because of travelling expenses (because of logistical issues/developing infrastructure becomes more adaptive and flexible to small town life, but at the same time it lead to the increase in costs); - rising labor costs; - attract young and unemployed people for exchange of the tickets; - mostly focus on subcontractors for a special tours (animals also were leased mainly with their trainers) - > present new show each year - > staff fluctuation; - mainly two sources of revenues: tickets sales + sales of food and attendant goods.

Problem Statement of Cirque Du Soleil

Cirque du Soleil places great importance in building a “performer-centric” organization that emanates creativity, originality and extraordinary performances. The company needs to ensure that its strategy for expansion supports successful company growth without compromising its commitment to extreme creativity and innovation.

Analysis Product & Strategy

Cirque reconstructed market boundaries within the circus industry by creating exceptional performances of theatre and dance dramas and eliminating animals and traditional circus acts. Creating demand in an uncontested market through the blue ocean strategy, Cirque focused on finding unique points of differences and differentiation within the marketplace as opposed to directly competing against others within the existing industry. Through value innovation and shifting from children to adults, a previously untapped consumer base, Cirque was able to generate demand and implement a higher pricing strategy. By expanding existing boundaries and setting its own criteria and rules, the company has been able to make competitors irrelevant...