Case Analysis of Cirque Du Soleil

Topics: Circus, Cirque du Soleil, Brand Pages: 6 (1636 words) Published: July 22, 2013
Cirque du Soleil
Background: Cirque du Soleil was the first ever circus group that evolved its self to the commercial world by introducing the simple but innovative and unique concept of combining the traditional circus acts with opera, dance, theatre and live music. Cirque du Soleil ensured success by executing the concept to the point of perfection. Excellent choreography and amazing pyrotechnics were the backbone of their success. The experience of a Cirque du Soleil show is considered to be as one of the most awaited and valued entertainment experience by people all around the world. Goal: The goal of Cirque du Soleil is to maintain their position as the market leader through constant innovation and also to expand their market by winning millions of hearts through sheer magic of their performance. Their goal suggest that they are in a constant strive to combine commercial success with artistic magnificence. Our Key Concern: To identify Cirque du Soleil’s true competitive advantages and to utilize those advantages in order to create strategies that would help them to reach their goal.

Competitive Advantages:
Brand Image:
Substitution of the traditional circus by a complete new flavor helped Cirque du Soleil to incorporate into public’s mind. They were the first who eliminated the use of animals in the circus. In addition, they innovated different styles of art that no one used before. These differentiation and innovation of their style captivated vast number of audiences. Thus, the recognition among public allowed them a competitive advantage. Their proficiency on the field prevents competitors to imitate their styles and the brand.

Rare Technical skills:
Cirque du Soleil had all potential people including the management with full of creativity and experiences. Guy Laliberete had creative ideas to take the organization to a new height. He came up with the idea of Bttersea Project and Montreal Mega Complex which were important to fight back the growing competition. The organization had plenty of competent employees who trained the performers to enhance their performing skills and abilities in a more constructive way. These skills of Cirque du Soleil help to keep the shows vibrant and enchanting. Guy Laliberete was described as creative “dreamer” and Daniel Gauthier as “numbers man” who helps the company earn profits.

Unique Organizational Culture:
The company emphasizes on the employees’ needs. The company ensures the safety of the performers. Besides, the accommodation and training facilities are provided to the performers in a four-star quality. Thus, it helps to retain employees and also improve their performing skills. The trainers travel with the troupe to train the new ones. Employees are encouraged to innovate new styles following a decentralized work system. Moreover, the employees are given the freedom to make decisions based on artistic and creative criteria instead of industry standards.

Government Affiliation:
Cirque Du Soleil planned to open a mega-complex in Montreal, the city that attracted tourists from the neighboring country United States. Due to its brand image and expertise for managing the diverse culture of people, the Montreal Chamber of Commerce and provincial government were interested to provide financial support to set the infrastructures of the enlargement plan.

Porter’s Five Forces Analysis:

VRIN Framework:

Resources| Valuable (v)| Rare (R)| Inimitable (I)| Non-substitutable (N)| Brand name| | | | |
Technical Skills| | | | |
Performers| | | | |
Organizational culture| | | | |
Universal acceptance| | | | |
Government Affiliation| | | | * |

Competitive positioning: Differentiator
Cirque du Soleil charges premium prices and justifies it by providing high quality and unique features. They made themselves unique by diverging away from the usual industry trend. Cirque du...
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