Scribd Logo
Upload

Welcome to Scribd!

  • 779 views

    Cirque Du Soleil

    Uploaded by

    sridhar7892
    The document summarizes the state of the circus industry in the 1980s and how Cirque du Soleil disrupted the industry. The traditional circus industry was declining due to decreasing interest, rising costs, and concerns about animal treatment. The industry was dominated by a few major players that offered similar content with little innovation. Cirque du Soleil emerged and reinvented the circus by eliminating dangerous acts and animal shows, focusing on artistry over commerce, and developing theme-based shows. They also partnered with resorts and theme parks to share costs. This blue ocean strategy helped Cirque du Soleil achieve higher profits and grow their business significantly despite challenges around diversification and brand dilution.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Cirque Du Soleil

    Uploaded by

    sridhar7892
    779 views16 pages
    The document summarizes the state of the circus industry in the 1980s and how Cirque du Soleil disrupted the industry. The traditional circus industry was declining due to decreasing interest, rising costs, and concerns about animal treatment. The industry was dominated by a few major players that offered similar content with little innovation. Cirque du Soleil emerged and reinvented the circus by eliminating dangerous acts and animal shows, focusing on artistry over commerce, and developing theme-based shows. They also partnered with resorts and theme parks to share costs. This blue ocean strategy helped Cirque du Soleil achieve higher profits and grow their business significantly despite challenges around diversification and brand dilution.

    Original Description:

    Cirque du Soleil

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes the state of the circus industry in the 1980s and how Cirque du Soleil disrupted the industry. The traditional circus industry was declining due to decreasing interest, rising costs, and concerns about animal treatment. The industry was dominated by a few major players that offered similar content with little innovation. Cirque du Soleil emerged and reinvented the circus by eliminating dangerous acts and animal shows, focusing on artistry over commerce, and developing theme-based shows. They also partnered with resorts and theme parks to share costs. This blue ocean strategy helped Cirque du Soleil achieve higher profits and grow their business significantly despite challenges around diversification and brand dilution.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    779 views16 pages

    Cirque Du Soleil

    Uploaded by

    sridhar7892
    The document summarizes the state of the circus industry in the 1980s and how Cirque du Soleil disrupted the industry. The traditional circus industry was declining due to decreasing interest, rising costs, and concerns about animal treatment. The industry was dominated by a few major players that offered similar content with little innovation. Cirque du Soleil emerged and reinvented the circus by eliminating dangerous acts and animal shows, focusing on artistry over commerce, and developing theme-based shows. They also partnered with resorts and theme parks to share costs. This blue ocean strategy helped Cirque du Soleil achieve higher profits and grow their business significantly despite challenges around diversification and brand dilution.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    Click to edit Master subtitle style

    3/10/13

    Team 2 - Synergy

    11

    Cirque du soleil

    Reinventing Circus

    1212057 : Sreeharsha Rangarajan 1212058 : Sridhar R 1212059 : Sriharsha Chunduru 1212060 : Sudheer Dhurjati 1212061 : Sudhir T S
    Team 2 - Synergy 22

    3/10/13

    Circus Industry in 80s

    Major part of circus was dominated by Ringling Bros. and Barnum & Bailey Three-ring circus Shows were only tweaked versions of previous acts with little/no new content Slow and declining industry growth

    Decreasing interest among audiences Emergence of TV, movies as substitutes

    Rising cost of production

    Rising labor costs (cost of hiring performers & animal trainers) Shortage of open spaces (open spaces taken up for sports/civic events)

    3/10/13

    Increased concerns from animal rights activists Aisle concession sales


    Team 2 - Synergy

    33

    Circus Industry in 80s


    North American market was dominated by Ringling Bros, Bernum and Bailey Product Differentiation Low Switching cost

    Threat of New comers

    Competition for popular acts increased supplier (animal trainers, famous performers) power, costs

    Supplier Power

    Competitive Rivalry
    Two Big American families had more than a century of circus tradition (Cost of exit, Equal size, similar strategies) Most of the circuses offered more or less the same content with little innovation and competed in a red ocean

    Buyer Power
    Audience had a wide range of entertainment to choose from. Audience faced little switching cost.

    Audience had a variety of substitutes to choose from like: 1. Movies 2. Theatre 3. Opera 4. Video games etc

    Substitutes

    3/10/13

    Team 2 - Synergy

    44

    Factors of Differentiation in Traditional Circus

    Tweaking the existing acts Hiring famous clowns

    Thrilling and dangerous stunts Equestrian/Animal acts Some moved from tents to permanent arenas to cut costs and so that show can run in winter Dislikes
    Likes

    Family Event Less focus on commercialization


    More emphasis on artistry Fun and Thrill

    No innovation 3-Ring Circus Unethical use of animals Death defying stunts that people did not really appreciate Lack of theme Ordinary venues

    Distinctive Features of Cirque


    Reduce

    Dangerous stunts Concession sales

    Increased value

    Star performers Animal shows Three ring circus Free tickets

    Eliminate

    Reduced costs by eliminating unwanted elements Higher customer satisfaction leading to greater revenue Delivery of creativity/innovation through a scalable model

    Theme Multiple productions Original Score and dance Permanent/Resident shows

    Create

    Unique Venue Intellectual component Refined environment

    Raise

    3/10/13

    Team 2 - Synergy

    66

    Value Curve

    3/10/13

    Team 2 - Synergy

    77

    Strategy : Products

    Touring shows (traditional business)

    Colorful big tops & arena shows Lifecycle strategy with tours in various continents for many years

    Resident shows (Partnering with organizations to share production costs)

    Shows at Vegas, Orlando


    88 revenue)

    Other products

    Merchandise sales (10% 3/10/13 Team 2 - Synergy

    Strategy : Products (cont..)

    Pursue dual goals of artistry and profit Exclusivity (Clowns, yes. Clones, no) Organization as the heart of Cirques creative process - not a particular group of individuals.

    Rotation of stage directors

    None of the activities outsourced (unwilling to compromise on quality or artistic integrity)

    3/10/13

    Team 2 - Synergy

    99

    Strategy : Performance & Profitability Eliminating high cost elements

    Animals Star performers

    Increase buyer value by offering Theme Based shows More importance on innovation and creativity Blue ocean strategy of creating new market by partnering with resorts and 3/10/13 theme parksSynergy Team 2 1010

    Strategy : Performance & Profitability (Cont..)

    Sharing production costs with partners Rotation of stage directors Re-investing in business to support innovation Organization Structure based on independent creative cells ensuring increased accountability and scalability

    3/10/13

    Team 2 - Synergy

    1111

    Challenges to Growth and Diversification

    Cannibalization of its shows due to increased no. of shows (e.g. 8 shows at Vegas) Brand dilution by moving away from big tops to arenas and theatres Risks in choosing the right partner Diversification beyond gambling or existing destination cities
    3/10/13

    Saturation in US- market that still Team 2 Synergy 1212

    Factors Influencing Structure of Industry Innovation & creativity

    Ability to garner larger market share (Blue Ocean strategy) Advent of newer technologies could act as formidable substitutes. E.g. 3D movies usage of materials used for the shows
    1313

    Advent of newer technologies

    Environment policies

    3/10/13

    Team Diversification2 - Synergy

    ?
    3/10/13 Team 2 - Synergy 1414

    References

    The Evolution of circus industry, INSEAD, W. Chan Kim Even a clown can do it: Cirque du Soleil recreates live entertainment, INSEAD, W. Chan Kim Cirque du Soleil The high-wire act of building sustainable partnerships, Harvard business school, Ramon & Maxime From the Streets to the Stars, Da Yi and Ebube Anizor The big top that wasnt big enough, JournalOfInternationalManagement.com www.cirquedusoleil.com Blue Ocean Strategy, The Wharton School, Roch Parayre

    Thank You!

    Indian Institute of Management Bangalore Bannerghatta Road, Bangalore 560 076, INDIA

    www.iimb.ernet.in

    You might also like