Topics: Cirque du Soleil, Brand, Guy Laliberté Pages: 5 (1055 words) Published: February 3, 2012
North South University
MGT: 489

Case 2

Prepared for:

Bobby Hajjaj (BHj) North South University
Prepared by:

ID 072 276 030 072 277 030 072 356 030 072 434 030 072 578 030 072 600 030

NAME Sohag Chakma M. Raashed Mahmud Sreezon Rahman Nahian Kabir Ashraf Uddin Ahmed Refath Islam

Section: 03 Date of Submission: 19th June, 2011
Word Count: 978


Cirque du Soleil, innovator of category in live entertainment, was initiated from a group of street performers. It has a unique hybrid of music, dance, and acrobatics that mesmerized the people around the globe. Since its beginning, it has travelled around the world transporting the audience to an alternate dimension of reality. Their innovative shows performed by world-class performers and their commitment towards highest quality built a strong brand name that became their core competencies and competitive advantage over its competitors. When cirque started, there was almost no competition however recently they are facing competition locally and internationally. Hence, to remain profitable and maintain its market leadership it is high time that cirque should develop future competency.

Key Issues
1. Cirque du Soleil started their journey with a unique idea of creating universal appeal. It was an excellent mix of artistic creativity and commercial success 2. The resignation of Co- President and childhood friend Daniel Guthier has created more

pressure for Guy Laliberte. 3. Increasing number of competitors create pressure on company. 4. Due to the failure of ‘The Battersea Project’, company’s brand image was massively

affected. 5. Attracting adequate number of artists to maintain the exclusivity of the company.


Competitive Advantage: The requirements of competitive advantage are one that is Valuable, Rare, Inimitable, and Non Substitutable. Here, we find out three core competencies. Those are strong brand image, talented performers, and universal acceptance. But, when we talk about VRIN model, only brand image will consider as competitive advantage.

Core Competen cy

1. Competitive Positioning: Cirque is famous for its commitment to the best quality show and most superior services by following a differentiation strategy. To maintain this quality it needs a good cost which justifies the higher ticket prices. When it comes to market

scope Cirque focuses on the broad segment. They do not customize their shows for different geographical location rather they have a standard form of shows. As a result, people all over the world like their shows.


Cost Leadership Competitive Advantage Differentia tion



Market Scope

2. Resource Based View: Cirque du Soleil has the universal appeal with no language. Their performers are recruited from different events like Olympic which have provided them with flawless teamwork and effort. Moreover, they have decentralized HR operations so that they can cope with different employment policies, insurance regulation and tax laws from country to country. Such business process has added value to their success over their competitors.

3. X-factor:

Valuable: Cirque Du Soleil was the pioneer of a unique live entertainment which blends opera, dance, theatre and circus with live music. Hence their brand image is higher than any other competitor. Their excellent blend of art and business has made them a strong brand which adds value.


Scarcity: The Company has a very good number of skilled performers which is not a very good reason to be different or to get a competitive edge over others. Good performers can be found by training up or hiring.

Imitation: The show contents can be easily copied.

Discount & Seasonal Offers: Cirque’s main source of revenue is its ticket selling. Since Cirque does not compromise with its quality, their ticket price is justified. Some new competitors offer similar shows at...
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