CIRQUE DU SOLEIL

IN 10 YEARS

Simon Abramov 59656945

M. Ignacia Garib 450613672
Chen 450618161

Flora Ip 450543069

Ashley

AGENDA

1. WHERE CIRUQUE DU SOLEIL IS NOW

2. MAJOR BUSINESS ISSUES
3. STRATEGIC DIRECTIONS
4. HOW ASSETS & COMPETENCIES MUST EVOLVE

1. WHERE CIRQUE DU SOLEIL

IS NOW

VALUE PROPOSITION

By embracing innovation, creativity,

and the wonder of human possibility,
Cirque du Soleil created a one of a
kind entertainment experience.

Provides the audience with an

escape from a reality and into the
stimulating and mesmerizing world
of Cirque du Soleil.

This will still be relevant in 10 years.

ASSETS & COMPETENCIES

Brand Reputation

Human Resource

Financial Resource

- Top of mind in the

market
- 10 reputable
residential shows
8 touring shows in
worldwide
coverage

- Over 4000
talented employee
- Best of the best
performer
- High productivity
and high quality
creation

- Solid revenue
stream
- Large investment
in R&D

Technology

- Advanced and
innovative
performance
technology
- Solid enterprise
IT foundation, i.e.
SAP

Ecosystem

- Partnership
Resident show:
MGM Mirage
Movie: IMAX
Logistic: DHL
New venue:
MSC cruise
- Customer:
engagement &
loyalty

ASSETS & COMPETENCIES

Innovation System

- Complete production cycle from

creative, experience design,
costume production, performer
training to marketing promotion.
- New Technology development
- Business model transformation

Talent Management

- Constant recruitment for the best

of the best performer in worldwide
- Strong data base of talent pool
- Shared core Cirque du Soleil
values

2. MAJOR BUSINESS ISSUES

MAJOR BUSINESS ISSUES

#1 Diversified expansion beyond

Cirque du Soleils assets and
competencies will stifle growth.
#2 Shows are designed in a
traditional spectator-performer
model.
#3 Oversaturated Cirque du Soleil
shows: consumers devalue
individual shows (therefore the
brand) and see them all as one
and the same.

MAJOR BUSINESS ISSUES #1:

Supportive Analysis:

A failed and costly ($75M) attempt at building

a Cirque Du Soleil hotel in Montreal.

Reason - real estate partner could not be secured as

the Cirque wanted to control the development. Hotel
development and management is not one of
Cirques competencies.

Unsuccessful expansion into China.

Reason - acrobatic performances have been a part

of Chinese culture for centuries. Average visitor stay
in Macau is 1.5 nights. Acrobats (asset) are not
highly regarded in China. So need to think differently
to penetrate the Chinese market.

Diversified expansion beyond

Cirque du Soleils assets and
competencies will stifle
growth.

MAJOR BUSINESS ISSUES #2

Supportive Analysis:

The Information Age is over commercial success

now comes from engaging and empowering with
customers.

Daniel Lamarre, admitted that current Cirque du Soleil

shows are not immersive enough.

Shows are designed in a

traditional spectator-performer
model.

MAJOR BUSINESS ISSUES #3

Supportive Analysis:

Some managers were afraid of Cirque losing its

competitive creative edge as it kept on
increasing the number of performances It
rises the challenge of keeping up with the
expected value that their shows must deliver in
terms of entertainment quality. (Morimura et al.,
2011)

Percentage of people who attend any shows

during their current stay in Las Vegas dropped
from 72% to 65%. The percentage of Other paid
attractions such as concerts, DJs playing in
clubs, amongst others, have been increasing
since 2012.

cont.

Oversaturated Cirque du Soleil

shows: consumers devalue
individual shows (therefore the
brand) and see them all as one
and the same.

MAJOR BUSINESS ISSUES #3

Supportive Analysis:

One problem, is that audiences didnt

understand the differences among various
shows carrying the Cirque brand. As a result
many people would dismiss the opportunity to
see, for instance, the show Totem thinking they
had already seen something similar in the older
Varekai (Wall Street Journal 2014)

3. Oversaturated Cirque du Soleil

shows: consumers devalue
individual shows (therefore the
brand) and see them all as one
and the same.

3. STRATEGIC DIRECTIONS

STRATEGIC DIRECTIONS

#1 Scale back diversified expansion. Expand but strategically.

#2 Create participative and interactive entertainment experiences.

#3 Create exclusive, limited run events Big Bang Experiences

STRATEGIC DIRECTION #1
Scale back diversified expansion. Expand but strategically.

Why?

Expanding into areas that are beyond Cirque du Soleils assets &
competencies leads to failed expansions.
Proven examples of over reaching capabilities and failing: $100mil Montreal
Resort Project, expansion into China
Oversaturating the brand will diminish the values laid out in the CVP.

How?

Outsource when outside of assets and capabilities

Relinquish control to trusted partners
Stick to what youre good at avoid overextending with diversified expansions

STRATEGIC DIRECTION #2
Create participative and interactive entertainment
experiences.

Why?

Our Strategic Direction must bear in mind undergoing generational changes The Millennial Generation.
- largest generation in history
- moving to its prime spending years
- will eventually reshape the economy: change the way we target our
audiences.
(Goldman Sachs, 2015)

What do they want?

- 80% of Millennials want brands to entertain them
- 40% want to participate in co-creation of products and brands
(Millennial Marketing, 2015)
cont.

STRATEGIC DIRECTION #2
Why?

By immersing the costumers through participative, interactive

experience Cirque du Soleil could:
increase costumers experience, breaking away from
the traditional / passive interaction they currently have.
get closer to the Millennial generation.

Furthermore, it would contribute to Cirque du Soleils

branding, as "Customer loyalty can only be achieved through
sustained, entertaining, and engaging interactions with our fans."
(Tierney, 2014)
- moves from a product and into an experience
- it recruits participants - people eager to promote Cirque du Soleil
- It aims towards costumers heart rather than their wallet: people
as more than consumers.

cont.

STRATEGIC DIRECTION #2
HOW?

Partnership with creative technology providers who can increase

the costumers interaction and participation

Communicating and advertising through Social Media:

Millennials want you to approach them. We have never done
that. We never have had a strong enough presence on social
media. (Lamarre, 2015)
- WOM: through collaboration virality -show and tell
- "Here's the thing about millennials - They love our shows,
but we have always been too traditional in our advertising
not really sharing images from the shows, for example
(Lamarre, 2015)

STRATEGIC DIRECTION #3
Create exclusive, limited run events Big Bang
Experiences

Why?

Prevent Market saturation

How long can the Company continue to innovate?
The Millennial Generation is experience collector.
Create sharable content, global experiences, engage audience on an
individual level.

How?

In places such as The Eiffel Tower, Antarctica, and Space

Annual Festivals

4. HOW ASSETS &

COMPETENCIES MUST
EVOLVE

HOW ASSETS & COMPETENCIES MUST

EVOLVE

Brand Reputation

Human Resource

Financial Resource

Technology

Ensure that brand

stays strong
- Huge
investments in
marketing/
communications
Creating content
that is relevant to
the audience

- Best people
across relevant but
unusual functions
- Not only focusing
on artists or
creativity

- Maintaining solid
revenue streams
- Still investing in
R&D

- Growing
importance of
technology in
entertainment
industry
- maintaining good
partnerships with
technology
providers which
can serve as
unique features

Ecosystem

- Business
partnerships:
Selective,
exclusive,
specialised partners
when expanding in
new territories (cocreators)
- Customers:
participants NOT
just consumers

HOW ASSETS & COMPETENCIES MUST

EVOLVE

Innovation System

Maintain creativity
and innovative
potential through
appropriate
staff/ processes and
cooperations.

Talent Management

Recruitment
strategy extend to
other business
functions, such as
scientists, social
media managers
and so on.

Adaptiveness

Not only being

adaptive to recent
events but also to
changes in
customer needs.

Wrap-Up
Current strategies are not sustainable
assets & competencies do not support diversification strategy
consumer trends are not thoroughly considered
Appropriate strategic directions to be implemented to ensure future success.
THEREFORE: Need to maintain and develop assets and competencies.

Thank you!

REFERENCES:

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