Carnival Theater Cirque Du Soleil


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Cirque du soleil is one of the greatest Canadian entertainment organizations. Carnival Theater Cirque Du Soleil is a creative stage to grandstand workmanship with art. They outline their show to influence individuals to feel that they are experiencing their adolescence once more. Their entertainers are enrolled from all parts of the globe with an intent to perform shows that would make their audience feel entertained nevertheless of the cultural difference they might have between them.

Their vision is to engage people from all around the world by being in the distinctive mediums of diversions to hold the enthusiasm of the gathering of people by separating themselves with their imagination and expressions. The core values of Cirque du Soleil are: To uphold the integrity of our creative process; To recognize and respect each individual’s contribution to our body of work; To extend the limits of the possible; To draw our inspiration from artistic and cultural diversities; To encourage and promote the potential of youth.

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Strategic intent: Laliberte plans to establish mega entertainment complexes around the globe which includes combination of hotels, restaurants, retail stores, museums, and spas etc. which would create an environment that would enhance and extend the Cirque experience.

Competitive Imperatives, Technological Imperatives, Financial Imperatives, Marketing Imperatives, Organizational Imperatives, Operational Imperatives are the main key success factors for an industry.

  • Competitive: Innovation, Uniqueness, and Reputation
  • Technological: Leading-Edge Knowledge, Expertise
  • Financial: Capital, Pricing, and Remuneration
  • Marketing: Products, Propositions, Customer Base
  • Goals
  • To support and sustain their top position in the business.
  • Differentiating themselves through outlining their shows more innovatively and using modern day approach to hold the enthusiasm of the group of audience
  • Balance their artistic and business execution.
  • To ensure more secure acts of performance to avoid any injuries of their performers.
  • Hiring artiste and athletes and managing employees are to be done through that national offices of their respective continents.
  • To create an environment that would enhance and extend the cirque experience by reinventing their traditional venues

Key Success Factors

Competitive Imperatives, Technological Imperatives, Financial Imperatives, Marketing Imperatives, Organizational Imperatives, Operational Imperatives are the main key success factors for an industry.

  • People are losing interest from circus.
  • They are having hard times to discover new ways to sustain the business both artistically and commercially.
  • The Cirque du Soleil has been confronting rivalry as contenders impersonate their model and ticket costs are lower.
  • They lack appropriate progression planning.

Porter’s 5 forces

  • High investment and capital cost in order to stake a claim.
  • Incumbent experience/learning advantage.
  • Maintaining premium employees are high.
  • Moderate equipment cost.

Competitive Rivalry: Moderate (Somewhat Attractive)

  • Only 2 competitors in the industry-Crique Eos, Crique Eloize
  • Low brand loyalty
  • Low switching cost
  • Low industry growth

Threat of Substitute: Very High (Not Attractive)

  • No switching cost for customers
  • A large number of entertainment events (concerts, sports)
  • Other more interesting TV shows

Bargaining Power of Buyers: High (Not Attractive)

  • High number of substitutes are available.
  • Shifting towards another entertainment platform is inexpensive.

Bargaining Power of Suppliers: High (Not Attractive)

  • Premium employees are essential for the show
  • No substitute product available as performers who knows these skills are scarce.
  • Switching cost is high as training cost to bring in new performers increases

Value Chain

Program designing—-recruitment and training——technology development—-costume–logistics—–marketing—–services

The industry is not attractive because of their industry growth is low, low switching cost of their customers along with high bargaining power of buyers and sellers and high threat of substitutes. Cirque Du Soleil basic esteem exercises are program outlining, advertising and administrations so they need to cut cost from different activities and concentrate more on these three zones. They need to outline their projects in more novel and present-day approach to draw the fascination of the clients. Value innovation: Cirque Du Soleil was the first to turn out in this entertainment segment with an alternate idea that can give its audience an experience which they never had. As they don’t just look like a common circus rather they likewise mixing worldwide style, musical drama, move, theater with unrecorded music. Cirque made its incentive among the audiences by continually turning out with inventive, innovative and new thoughts performing for their extensive variety of groups of audience spreading around the world.

Porter’s 3 Generic Strategy

Focused Differentiation

We can assess that they are targeting a niche strategy, where they have targeted a small section of the audience who can pay a premium price for a lifetime experience. They believe that there is a small size of the market that would want to experience such events because they added different dimensions which hardly resembled a circus, and people would love to enjoy such shows. For ‘Differentiation’, they started with no animal shows, unique show ideas with highly skilled performers, blends opera dance, theatre and circus with live music, world class choreographer with keeping their ticket price high.

Cost leadership: they should focus on ‘cost-leadership’ by cutting investments from their failed projects and they should only focus where they are efficient like only circus shows keeping their uniqueness with animal-free show.

They should focus on their program design and add more value like the concept of the shows need to have a universal acceptance like no-age-bound and add contemporary storytelling in their shows.

As Cirque Du Soleil used to be the world class circus show, because they use ‘differentiation’ strategy. Right now, they are stuck in middle of ‘differentiation’ and ‘cost leadership’ strategy.

Competitive Advantage Analysis – Resource Based View

Rare: They are known for their innovativeness. They hardly resembled a typical circus. Cirque blended opera, dance, theatre, with live music. They are no animals in the shows which is a nice initiative.

Inimitable: Their shows Quidam, Alegria, Saltimbocca, and the new show Varekai has vividly different plots. Saltimbanco is a rag to riches story of Liliberte, which is impossible for others to imitate. Other shows are also created with such well written plots that it is inimitable. The difference of the plots from one show to the other is the major reason why their company is inimitable.

Valuable: People come to their shows and seem to be profoundly affected by what they see. It brings people back to their childhood, which hits them in the emotional side, and is very inimitable. People come to their shows and seem to be profoundly affected by what they see. It brings people back to their childhood, which hits them in the emotional side, and is very valuable.

Sustainable: All Cirque projects were meant to have a shelf life of 10 years, but after celebrating its 3000th show, Saltimbanco, their oldest show which had run for 10 years and should be the first one to retire. But the demand for the show has been increasing so much that they are reconsidering its 10-year rule and goes to see its sustainability.

Non-Substitutable: They believed that they should move away from the usual circus and others more traditional types continued displaying their old antics, meant that they could no longer compete with Cirque, which strived led them to strive and rise to the top thus making it stand out from the rest of the crowd.

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