After reading, answer these questions What are the key factors kept by Le Cirque

Question

After reading, answer these questions
What are the key factors kept by Le Cirque? Which ones were downplayed and which ones were played up? Which factors were totally eliminated by Le Cirque and what are the operational and financial implications? Which factors were newly created by Le Cirque, and where do you think the inspiration came from? How does Cirque du Soleil create superior profits? How does it improve industry growth and generate greater revenues? How does it raise profitability and reduce its cost structure? oo AT&T; LTE 10:51 AM INSEAD Blue Ocean Strategy Institute BOS008 The Business School for the World CIRQUE DUSOLEITIL Even a Clown Can Do It (B): Cirque du Soleil Recreates Live Entertainment Winner of the 2008 European Case Clearing House Award in the category 02/2016-4999 This case was prepared by Matt Wilsamson, INSEAD MBA 2000, under the upervision of Prodessors W.Chan Kim, Renée Mwaborgne and Ben M. Bensaou, all at NSEAD is intended to be used as a basis for elass discussion ratther than to illustrate either efective or ineffective handling of an admiristrative siteation Additional material about DSEAD case studies (e.g., videos, spreadalnet, ?ka) can be accessed Copyright © 2002 INSEAD

Explanation / Answer

Le Cirque since inception promised novelty the circus which is not only a circus, this main theme was kept up and the circus was a beautiful amalgamation of circus, dance and opera. It combined the magic of three genres of stage entertainment to provide gripping entertainment which fuelled their amazing growth and provided them the much needed financial support from the quebec government and influential fans. They did not follow the circus tradition of keeping the performers a close intimate family like circle. Guy Caron established the circus school in 1979 and many of the original performers of Cirque du Soleil were outsiders from this school with hippie counter culture roots. Commercial viability was given precedence over skill and artistry by including varied performers to create an interesting and unique mix. The show was not a series of acts but a theme based spellbinding entertainment experience for the spectators. This theme was in a subtle manner woven into the act through costuming, colour themes or other ways.

Cirque du Soleil completely eliminated the use of animals in their shows this was a major aberration in the world of circus where wild animal trainers are a major draw. Due to its thematic production of an entertainment show that almost bordered on a story line created through its use of discreet themes big names and performers of the circus industry were not used as their performances would not meld into the show producing a jarring effect. The main aim of Soleil was to present a unique experience which it was not willing to compromise on, this proved to be their strength and they never lacked audience on any tour in any land. Their decision to not provide discounts on tickets or free tickets for children was also an intelligent decision as their show was in demand and children were a very minor percentage of their audience. Not allowing hawkers into their shows was a necessity because the uniqueness of their shows depended a lot on the atmosphere created by the themes and performances embroidered onto the entire show, Any distraction would take away from this enthralling experience.

The factors newly created by Le Cirque were of presenting a unique act never before seen or experienced. It was out of the box thinking rather than innovation while most circuses innovated by pushing their performers to perform more dangerous and difficult stunts to impress audiences which failed miserably, Le Cirque made each act different infusing a bit of theater, opera and circus to a thematic presentation which was incomparable and unforgettable. Each act was a piece of artistic creation. It ditched predictability entirely and stayed away from animal acts or big names. In one word they personified UNIQUE. The inspiration came from the dream of Guy Laliberte to reinvent circus.

Le Cirque retains spectators by never disappointing them and gradually they became a brand name and known for their enthralling acts. They created a market value for their brand by demanding a higher price and not offering discounts which created a feeling of exclusivity for the fans. It was an intelligent experience not only a visual treat, it was definitely not targeting the masses, they wanted to be the caviar and they definitely suceeded by ensuring their taste was exclusive and people got value for money. This really increased their profits and market share exhibited unprecedented growth. During times when other circuses were facing losses or stagnation Le Soleil was soaring.

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