Cirque du Soleil is a Canadian entertainment company that was founded in 1984 by public entertainers. The group of public entertainers was led by Daniel Gauthier and Guy Laliberte. The circus’ headquarters is located in Montreal, Quebec and they average over 5,000 performances a year in over 40 cities around the globe. Their vice president of information technology, Danielle Savoie found effective ways for IT to support the growth of Cirque du Soleil. The IT department played a critical role in the organization in more ways than expected.
Thomas J. DeLong; Vineeta Vijayaraghavan
Harvard Business Review (403006-PDF-ENG)
July 18, 2002
Case questions answered:
Case study questions answered in the first solution:
- Perform an analysis of the dimensions of Cirque du Soleil’s offering. Indicate your value proposition and competitive advantage
- Perform Cirque du Soleil’s environment analysis and internal analysis. Conclude with a diagnosis based on the tools used
- Carry out the analysis of Porter’s Forces in the sector, indicating the level of competitiveness of the category.
- Propose a new value proposition for Cirque du Soleil to launch in 2021. Establish the target market and positioning. Develop a brand strategy according to your proposal, including an effective communication plan
Case study questions answered in the second solution:
- What is the background of the case?
- List the issues found in the case.
- Provide a Value Chain analysis and a business IT maturity model of the industry. Tie it back into the applicable issues found in question 2.
- What are some recommendations that you can provide? Use a solutions map.
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Cirque du Soleil Case Answers
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1. Perform an analysis of the dimensions of Cirque du Soleil’s offering. Indicate your value proposition and competitive advantage.
The dimensions of Cirque du Soleil’s offering are:
- Commodity: The leading service to offer is entertainment for many people.
- Generic product: The right environment to present the show, seats by zones for comfort.
- Expected product: Wide, sophisticated, and decorated spaces according to the show to offer
- Increased Product: Facilities for buying tickets and reservations for the show of interest
- Potential product: Differentiation of the service based on shows creating a new category of high-quality presentations.
The value proposition is to define the value proposition of the service. You must identify 3 critical aspects of the service to be offered:
- Target audience: The kind of service offered by Cirque du Soleil is aimed at families, men, and women looking for memorable entertainment. Within the age, ranges are considered for adults aged 25 to 50 and children or adolescents aged 9 to 15 who appreciate art.
- Benefits offered:
- Combines a traditional show of a circus and plays
- Offers a sophisticated atmosphere thematic atmosphere according to the type of show
- Variety of shows
- Differentiating element: the experience offered.
Based on the factors mentioned above, Cirque du Soleil’s value proposition is “Cirque du Soleil offers an unparalleled show combining plays, music, and dance in an ideal environment to create an illusion of fascination for our visitors and create a memorable experience of the show offered.”
Its competitive advantage is that it focuses on human resources, which has favored him for his value proposition, as the show offered is presented by his acrobats and other actors who break the paradigms of a traditional circus. It introduces a cost reduction by eliminating the use of high-cost animals to keep them in good condition and transport them, with this characteristic attracting a more selective audience and willing to pay for quality service.
2. Perform Cirque du Soleil’s environment analysis and internal analysis. Conclude with a diagnosis based on the tools used.
Politic – legal
For Cirque du Soleil, the political situation has been quite favorable to it, since it has had no problems in this area and the laws of the country in which they are presented make it easier for it to arrive. However, several factors affect economic policy that could affect the monetary policies of the countries where the Soleil service is purchased.
Also, the exchange rate is critical, because the country they are targeting can go through some problems such as the depreciation of the currency. It will cause tickets to the show to be more expensive in that country and to be different in another that is not in the same situation.
This industry is regulated by ISO 9000 standards, which corresponds to quality control and management concerning its quality standards and service level. Cirque du Soleil responds successfully with its presentations and the way of working of this company. It may vary due to free speech and labor laws by country in which.
Several economic factors would affect public assistance and spending in a financial crisis. This crisis is happening this year with the advent of the COVID-19 pandemic affecting everyone. With quarantines imposed everywhere, they have prevented their presentations from being made. This situation has caused the circus to be on the brink of bankruptcy. So far, they have lost 95% of their workforce and canceled several of their submissions.
Similarly, the standard of living and purchasing power are also influential factors in deciding to present yourself in those places. Tickets are usually not very expensive for the experience of each show, but they could be costly for people from middle-class families whose salaries are minimal.
Cirque du Soleil is a company that places high importance on its values and attitudes, and all its employees are aligned with its objectives. It has more than 5000 workers who are from different countries around the world, unlike previous years that were only made up of Canadians. His tours are all over the world, and his shows are aimed at an audience without discrimination.
They do not present social conflicts when they occur in some regions since what they promote is entertainment and giving the public a different and unique show. Attendees of these presentations are generally satisfied with the service they saw.
However, due to the current global situation caused by COVID-19, social estrangement has caused their presentations to not take place, harming their income and jobs. Also, when many countries can reset and recover after this pandemic, there will still be people who will not want to attend such show events any longer than security protocols are followed. Social estrangement will continue for a long time.
Physical technology is not the primary tool for Cirque du Soleil. They started with necessary technology such as blisters and background music. Today, their shows are innovative and impressive, using modern technology along with the spectacular performances of their artists and cast in general. Besides, it has a sound and play of lights that go according to the orchestra. Some singers are part of each presentation too.
They have also been able to take advantage of the internet since it has a website where the public can get information about the circus, watch videos, and buy articles and various products. For example, they currently have a virtual reality “VR Cirque Du Soleil” download app so consumers can participate in certain moments while the virtual show is being offered in Canada with scenes from past shows.
For Cirque du Soleil, facing this pandemic has been very difficult for him, which has pushed them to open their contents to the public due to quarantine. They use a virtual platform so that the public can enjoy their shows and tutorials for free.
Cirque du Soleil wants to have a low environmental impact. For years, they have been part of social responsibility projects through their presentations that are linked to environmental care such as the Neutral Carbon Footprint which seeks to calculate the number of greenhouse gases along with actions that can be implemented to reduce them.
This circus has adopted several policies regarding water management, greenhouse gas, waste materials, and hazardous materials, including education on the subject to its employees.
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