Cirque du Soleil Case Solution

1. What is Cirque's strategy?

Cirque du Soleil, from its owner to its artists, prides itself as a creative artistic works company. What they create on stage is the product of the artist's individual and collective expression, not distorted by perceived market demand and expectations. In staying true to its original concept, Company produces that magic and mystique on stage that enthralls audiences. Retaining the creative aspect as independent is what makes the performances strong. Customers see artists who have perfectly honed their crafts; deliver performances that move with the aid of visual effects. The whole team aims to provide an experience rather than entertainment. In the production of a single show, huge costs are incurred, but the company hierarchy has been mindful of the core of the service. The company has managed to repackage the circus in a mode that is classy to the upper echelons of society but priced it such that an average family of 4 can be privy to the Cirque du Soleil company experience. As a conscious effort, the company knows that the artists are the lifeline of the organization and all the departments converge to facilitate the artists to ensure that they are able to deliver what the company is all about. It is a strategy that the company has followed for years and one that has guaranteed that the show is able to provide something new and creative every time.

2. What are its most valuable resources and capabilities and why?

Artists are what make the Cirque du Soleil. They are its prime and prized asset. The Magic of the show is created by a whole team, comprising costume designers, lighting assistants. Human resources are the most important and driving factors at the company. In deciding to avoid going public and be dictated by business acumen, the company attracts and hires people who genuinely believe in the artistic expression of the show, whether they are in the corporate headquarters at Montreal or on the Road in Asia.

In bringing together all these people, Company's most potent capability is to harness their energy and skill to create shows that deliver an emotional impact. It is all dependent on the camaraderie that develops, fostering friendships, trust, and growth. In doing so, Company manifests its cross-cultural workforce to deliver a fusion of cultural art form's distinct to Cirque du Soleil.

3. Does Cirque du Soleil have a sustainable competitive advantage? If so, what is it? If not, can it create one?

The company has an advantage stemming from the scale of the operations that it is involved in. Other similar acts are resigned to singular countries or regions; Cirque du Soleil is present on different continents. This has afforded it more exposure, recognition, and besides Broadway, it is perhaps the most well-known company for performing arts. This global presence is what affords the company its competitive advantage. At national performing arts companies you are going to see artistic forms of that culture being exhibited, but at company du Soleil you are just as likely to find a Mime artist from England, a Chinese acrobat and Peruvian contortionist in the same act. The amalgamation of cross-cultural artistic diversity is a unique factor for the company. The lavishness that is present in the sets is what drives the performance home for the audience.

As a performing arts company, it is expected for Cirque to have a high turnover but its unique global position and its Casting directors such as Ms. Cantin ensure that the competitive advantage is sustained. This is done in a twofold way, firstly the casting directors are mindful to hire artists that are not only incredibly skilled but are able to add diversity and value to the show, secondly, the promise of collaboration and learning attracts the best artists from all over the world.

4. What are the growth options available to Cirque du Soleil? What is your assessment of the firm's diversification strategy?

Cirque company has a presence on three continents, but the bread and butter of the company is the North American market. While Europe, as the home of artists, already has alternatives to the company the Asian market offers much more promise and opportunity. In regards to Asia, the company roughly operates at 65% capacity. In a market where the largest cities are popping up, where rural areas house a greater population compared to western areas, tapping this market can be of considerable advantage. The greatest opportunity though lies in the fact that circus industry in Asia is very small and informal with mostly local shows being run. The resources, identity and attraction of Cirque du Soleil can be used to merge with the local institutions to take advantage of the chasm.

The Cirque Lite initiative addresses both of these concerns and offers growth opportunities. The product that Cirque offers is unique, but its awareness in the mass market is limited. The Cirque lite shows can be used to spread awareness of the art and the larger tours, acting as their precursor. The company's plans of diversification include developing entertainment complexes. Creatively, the entertainment complexes should provide people with experience, but part of the company magic is the exclusivity and scarcity. If the feel of the show can be felt on any part of the weekday by just a drive to the mall or a part of the city the whole aura of the Cirque du Soleil is diluted. The diversification plans have to warrant that the company's strengths are not attenuated.

5. What are the biggest challenges that Cirque faces and what should it do about them? What are your strategy recommendations?

As a company, the concern for Cirque du Soleil is whether the growth it is experiencing is too quick. This growth has led to a large increase in staff, especially of artists. The rapid growth in artists pervades a fear that the artist pool might be dried up, and the performances might become monotonous. The company due to its growth and product incurs high production costs, in turn charging high ticket prices. The current prices, which are expected to rise, make the pricing out large sections of the society a real possibility and can bestow upon the company the unwanted tag of being only for the privileged. Given that the artists themselves come from humbler backgrounds, this can also disenfranchise the artist workforce at the company.

The company prides itself on being creatively led. Therefore, the main tours should be continued as they celebrate artist creativity. The company's policy to have shorter stops for the time being addresses the concern of dilution. To counter this, the company's plans to initiate Cirque Lite offering a good stepping stone. They directly deal with competition, allowing artists to be bred in the company way and make it more accessible.