Cirque du Soleil was founded in 1984 by former street performers Guy Laliberté and Gilles Ste-Croix in Quebec, Canada. It created a new market, or "blue ocean", for circus performances by distinguishing itself from traditional circuses through innovative shows without animal acts. Cirque du Soleil implemented a blue ocean strategy of reducing costs while increasing value for customers, leading to growth and higher demand. However, smaller regional circuses now imitate Cirque du Soleil at a lower price point with less successful execution.
2. CIRQUE DU SOLEIL ("Circus of
the Sun”) was founded in Baie-
Saint-Paul on 16 June 1984 by
former street performers Guy
Laliberté and Gilles Ste-Croix
(McKeown, 1988).
5. BLUE OCEAN
STRATEGY
It created a blue ocean of new market
space. Its blue ocean strategic move
challenged the conventions of the
circus industry. Cirque du Soleil’s blue
ocean strategy distinguished itself from
traditional circuses, leading to
distinctly different operational forces.
1. Cost Reduction
(Kim, & Mauborgne, 2004)
6. BLUE OCEAN
STRATEGY
2. Cirque du Soleil
increased value to the
buyer with an
innovative show and
increased demand.
(Kim, & Mauborgne, 2004)
8. Here, smaller regional
circuses are simply lower-
cost imitations of the big
names. Smaller circuses
compete largely on the
same dimensions but
executes less well and
commands a lower price.
9. References
• Cirque du soleil. (2020). History. Retrieved from
https://www.cirquedusoleil.com/about-us/history
• Kalamár, B. (2020). Strategy Canvas. Retrieved from
http://beatakalamar.com/blog/strategic-thinking/strategy-canvas
• Kim, W., & Mauborgne, R. (2004). Blue Ocean Strategy. Retrieved from
https://hbr.org/2004/10/blue-ocean-strategy
• McKeown, R. (1988, May 9). Showtime for Cirque du Soleil - CBC Archives.
Retrieved from https://www.cbc.ca/archives/entry/showtime-for-cirque-
du-soleil
• Paoletta, J. (2018, January 10). Mickey's Mail -A Blue Ocean Strategy.
Retrieved from https://www.brbc.org/index.php/home/timpanelli-topics-
3/328-mikeys-mail-january-10-2018
Notes de l'éditeur
Cirque du Soleil is a Montreal-based entertainment company and the largest contemporary circus producer in the world. Located in the inner-city area of Saint-Michel, it was founded in Baie-Saint-Paul on 16 June 1984 by former street performers Guy Laliberté and Gilles Ste-Croix.
A former street performer, Guy Laliberté decided to escape the red ocean of circuses to create a blue ocean of theatrical entertainment: Cirque du Soleil. Its shows combine the circus with adult theater, showing incredible acrobatics and physical feats set to a storyline and original music (Cirque du soleil, 2020).
In 1984, to mark the 450th anniversary of the discovery of Canada by Jacque Cartier, Laliberté decided to take the show on a province-wide tour, giving people a glimpse of the future of the circus arts while reflecting on the history of their storied nation.
This traveling show offered a unique take on the circus arts: Animal free, striking, dramatic, beautiful, and reflective. Street performances featured outrageous costumes, magical lighting, and original music.
1. Cirque du Soleil changed the nature of the show and thus decreased significant costs common to the industry.
They removed animal acts and their associated care, training, transportation, and housing.
Instead of three rings, their shows feature one stage, reducing the number of performers needed.
Instead of featuring star clowns and lion tamers, they anonymize the performers, thus preventing performers from gaining leverage and starting a bidding war with competitors.
Production value increased with music, lighting, storylines, and artistry. This increased sophistication to match prestigious Broadway shows, allowing high pricing of tickets to theater levels, well above the mass-market circus pricing.
The performance theater was upgraded with more comfortable seats, avoiding circus hard benches and sawdust floors.
Traditional circuses were by and large the same, whereas Cirque du Soleil could create multiple unique productions around different acts and music. This increased demand so a viewer could happily see multiple shows.
Now look at where Cirque du Soleil’s blue ocean strategy differs drastically, and where it offers similar value.
It cut down on costly expenses that didn’t provide customer value – star performers and animal shows.
Cirque du Soleil’s shows featured similar acrobatic wonderment and thrill as circuses.
It introduced entirely new elements like high production value and artistry, which were important to their customers but completely absent from normal circuses.
This strategy canvas clearly shows how Cirque du Soleil offered superior customer value while lowering certain costs.