Case Study-Ciruqe

Case Analysis Memo: Cirque du Soleil

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1. Product & Strategy

The product of Cirque du Soleil are mainly three types, they are

-multicultural art performance including music, dancing, acrobatics, etc.;

-feature films and large-format films;

-publications and merchandised goods.

Cirque du Soleil adopts the differentiation method to differentiate its products from the competitors. The performance of Cirque du Soleil is designed to transcend cultural boundaries rather than just to specialize in a single regional culture. The globalization concept which presents cross-cultural message can make it stand out. Except for the content, the staffing of Cirque du Soleil is also hybrid and multi-cultural, contributing to the high-performance quality and its differentiated characteristics. The product itself, although experiencing price cutting for market expansion, still charges a quite luxury premium price. These are all evidence for its differentiation strategy.

2. Company Structure

Cirque du Soleil is a private company which can be roughly structured as a dual-functioned one: Performance-related Sector and Tour Operation-related Sector. The performance-related Sector consists of artists, performance director and all the other staffs responsible for the content and quality-improvement of the show. They try their best to make the show more creative and more unforgettable for the targeted audience. The Tour-related Sector staffs are responsible for designing the tour destinations and taking good care of the employees. The tour sector will also be responsible for taking good care of the artists and making their employees happy.

3. Reasons behind Cirque’s superior performance

Manpower Strategy:

From a perspective of a Cirque’s employee, Cirque shapes a strong corporate culture that always let its employees feel strong sense of belonging and feel happy as a part of the Cirque. The best working conditions and healthy company atmosphere motivates both employees on the stage and behind the stage work with harmony, consistency and efficiency, which makes every show close to perfect.

Accurate Customer Segmentation and branding

From a perspective of customers, Cirque has clear customer segmentation, which is “mostly for adults who have sense of inner humanity and love for arts”. Based on this segmentation, they create in-depth performance with humanism spirit as well as the “power to alter life plan”. The impression o unforgettability devotes to a pretty high customer satisfaction degree and high customer loyalty. Cirque has taken effective actions to holding these customers by establishing fan clubs and Websites.