TU Management Cirque Du Soleil Traditional & New Strategies Essay – Description
Please you need to do the introduction for this project and answer the questions.
In 2019 the founder of Cirque du Soleil, Guy Laliberte?, and Daniel Lamarre, president and CEO of Cirque du Soleil Entertainment Group had to review the choices they’d made. After seeing the firm’s growth prospects wane in recent years, they’d tried to expand the firm in new directions, diversifying through new acquisitions while still investing in core activities. The company had acquired the Blue Man Group pop-art performance team in 2017, Florida-based circus arts producer VStar Entertainment in 2018, and The Works Entertainment magic and variety show producer in 2019. Musical theatre and special tourism events were among the other non-circus projects being pursued by subsidiaries, but some believed Cirque was trying to walk a fine line. Would these new ventures damage its central brand as a creative entity?
For three decades, the firm had been reinventing and revolutionizing the circus. From its beginning in 1984, Cirque de Soleil had thrilled over 180 million spectators with a novel show concept that was as original as it was nontraditional: an astonishing theatrical blend of circus acts and street entertainment, wrapped up in spectacular costumes and fairyland sets and staged to spellbinding music and magical lighting. But since 2008 it had seen a decline in profits, had had poorly reviewed shows, and even the public death of a performer. Consultants warned that Cirque’s market had hit saturation and the company needed to be careful about how many new shows it should add. One suggestion had been that Cirque should seek growth by moving its concept to movies, television, and nightclubs. Debate continued over whether the company should return to its roots or aim for constant reinvention.
The company was seeking additional ways to position itself as Laliberte? worked with Cirque’s executive team to come up with a sustainable business restructuring plan. He had wanted to manage diversification by creating discrete business units under a central corporate entity, thereby beefing up the noncircus side of the business. Influx of capital via a majority stake taken by global investment firm TPG and a minority ownership agreement with a Chinese investor could provide needed funds, but giving up control might necessitate a shift in the company’s culture, and what might that do to Cirque’s strong brand identity?
Over the years, Cirque du Soleil had managed to generate profits out of a business model that was quite challenging. By 2019, Cirque du Soleil had 24 shows, seven of them in Las Vegas. Since 2014 the firm had launched seven new touring shows. However, the rising costs of developing and operating so many shows had cut into the firm’s revenues and profits, even with higher ticket prices. Efforts to trim costs and branch out into new areas could help Cirque du Soleil increase profitability, and its acquisitions into new areas could broaden the company’s revenue base, but with each new business still running quite independently it remained to be seen if Cirque could manage the challenges of its core show business.
How has Cirque du Soleil leadership been able to create a new market space in a traditional industry? Is setting a direction, designing the organization, and nurturing a culture sufficient to create a sustainable business?
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