THE RINGMASTERS. Rebecca Hallquist

. Anna Sarmento. Ivy Ye

. Lila Ourari

. Juan Talavera

“SITUATION ANALYSIS”

5 C´s Analysis1.-CUSTOMERS: -Who are they? -What benefits do they seek? -How do they buy?

2.-CONTEX: PESTEL analysis & trends-Political-Economic-Socio- Cultural-Technological-Environmental-Legal:

3.-COMPANY: -McKinsey 7s Model

COLLABORATORS: -Alliances-Partners-Sponsors

COMPETITORS: -Who are they?

Resources and Capabilities

Tangible: (financial, physical, human)Strong partners and contract partnerships (tour venues, theatres), creative staff, touring equipment, their Montreal headquarters

Intangible: (patents, reputation, brand name, image) Globally-recognized brand image, intellectual and creative patents for their show concepts and material, strong and predominately positive reputation for the quality of their productions

-Cirque delivers unique entertainment productions-Cirque is mobile and visible simultaneously through their Physical shows, their merchandising, their audio-visual productions, and with their strong online marketing and social media presence. This ensures that their brand exposure isyear-round and global.

-Cirque is always innovative and and open to extending “the limits of the possible” (Cirque du Soleil website)-Cirque uses their global image to fight against poverty and to advocate for sustainable development (Yannick Spierkel)

Cirque is always innovative and open to extending “the limits of the possible.” (Cirque du Soleil website)

Core Competences

S.W.O.T. AnalysisStrengths (internal):-produce top-of-the-line shows-are socially responsible and active (programs in 20 countries, 5 continents)-have a good reputation-are multicultural-are hard to imitate-are flexible and open to new ideas and change-have motivated employees, who are able to move fluidly within the organizationto take on new roles-are well-organized: able to run many shows worldwide simultaneously

Weaknesses (internal):-the high cost of production for Cirque shows: ex. For the show “O” in 1999 the production costs were estimated $20 million (Harvard 2010)-can overextend themselves and lose focus of the organization’s goals and mission. (Nestruck)-as a large organization communication between and within the different departments is difficult to manage and achieve effectively. -performers tend to have short careers whether due to injury or deciding to retire early because of the intensive touring schedules and bodily strain -(Quigley and Mehrdad) -big risks/bold decisions can backfire (Nestruck)

Opportunities (external):Expand into new markets: -invest in new tours around the world, especially to China, Dubai, and Latin America-seek out new collaborators and sponsors (or use current ones) to expand into new markets -To expand their social activism: partner with other not-for-profits, such as Free the Children, for more sustainable development programs (with One Drop) -Possibilities for greater audience/fan engagement outside of performances: more interactive elements on their website (contests, videos, a “suggestion box”/interactive platform for audience members to share creative ideas for what they would like to see in future shows,

Threats (external):-changing demographic of the target market (Spierkel)-threat of over-stimulation & cannibalization of the market-the strength of the loonie/Canadian dollar vs. the USD and in the global economic climate (Canadian Press)-Cirque is too dependent on MGM Mirage - resident shows in Las Vegas are more than 50% of their revenue (Harvard 2010)-accidents and deaths of performers could threaten their public image and taint the image of the art of circus. -changing political landscapes (civil unrest, changes in government) can affect touring show locations,previous and future

SOURCESCasadesus-Masanell, Ramon and Maxime Aucoin. “Cirque du Soleil – The High-Wire Act of Building Sustainable Partnerships.” Harvard Business School. 2010. Print.

“Cirque du Soleil cuts 400 jobs as strong loonie and surging costs bite.” Canadian Press. Financial Post. 16 January 2013. Web.

“Cirque du Soleil Inc. Profile.” Hoovers: A D&B Company. 2014. Print.

Williamson, Matt, et al. “Even A Clown Can Do It: Cirque du Soleil Recreates Live Entertainment, Case B.” INSEAD: The Business School for the World. Blue Ocean Strategy Institute. 2002. Print.

Nestruck, J. Kelly. “Massive layoffs and mediocrity: Has Cirque du Soleil lost its way?” The Globe and Mail. 16 January 2013. Web.

Spierkel, Yannick. “From Streets of Montreal to World Renown Powerhouse – the Story of Cirque du Soleil.” York Region Arts Council’s Think BIG: Arts Exposed Conference, Springhill Suites by Marriott Vaughan, ON, 2014. Keynote Presentation.

“Dragon. Spectators Are Our Passion. Creation is Our Core.” Dragone. N.p., n.d. Web. 5 feb. 2015

Quigley, James, and Mehrdad Baghai. “Case Study: Cirque du Soleil.” FT.com (2011) ProQuest.Web. 4 feb. 2015

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