keys to the success of Cirque du Soleil
In 2004, Guy Laliberté (current CEO) was chosen by Time magazine as one of the 100 most influential people in the world. But what was the key to the success of Cirque du Soleil model?
On the one hand, the proposal of Cirque du Soleil departed considerably from the current concept of "circus", redefining the concept of the show and trying to be more than a succession of animals, clowns and acrobats to focus on telling a story that significantly articulates these different specialties.
Additionally, the Cirque's strategic goal is the creation of new shows every year and hold a standard rate of innovation, dismissing the circus tradition that used to put on a show and then devoted exclusively to represent all over the world.
Revenue for the Cirque du Soleil depends largely, of the localities. However, the creation of a powerful and attractive brand image associated with the quality and constant innovation has allowed diversify sources of income. Thus, for example, have been seduced to companies like IBM, Porsche and Visa for them to become sponsors of the shows. Content creators
Cirque du Soleil
surprises more than 7 million visitors a year, as well as teachers and students of business schools. At Harvard, among others, discussed in class, in an attempt to discover the reason for its sustained growth, especially during the last 10 years, despite the circus business is on the decline, threatened by competition from electronic entertainment and high logistics costs, among other nightmares.
as follows: "We manage 11 shows, some travelers and others permanent.
The first call for a complex logistics operation, supervised and managed by staff in Montreal and on tour, in which 80 trucks used to transport tents, stage, dressing rooms. The tours have a tight schedule, he adds. Remain between five and six weeks in one city, in general, functions ending on Sunday, and 10 days later you're all set to present the show elsewhere.
Of the 150 members of a traveling show, only 50 are artists, the rest is divided between technicians, logisticians, and tours involving children, teachers also.
In turn, the resident shows presented in Las Vegas and Orlando, cities where the company has agreements with MGM Mirage and Disney, respectively, companies that deal with buildings built or exhibiting.
In Las Vegas there are already four permanent shows. Specializing in entertainment media circus say changed the face of the city. Bolingbroke, more cautious, said that 13 years ago, when they came to the show "Mystère", found an ideal market for high quality entertainment.
behind the show Earnings (Fortune Magazine)
Cirque du Soleil has 3 divisions: "Cirque du Soleil Images, which is responsible for content production for television and DVDs, "Cirque du Soleil Events", a group that brings the creativity of Cirque to the organization of private events and merchandising division, which produces, sells and distributes products for shows.
For each tour, which over the past 20 years brought the circus to visit over 200 cities worldwide, the business model is similar. It should sell more than 100 000 entries in each "stop" to cover the cost of the tour. With tickets averaging the u $ s 110, the ticket sales revenue is around u $ s 1,250,000 in each city.
The show I visit Argentina "Joy" moved a cast of 55 artists and a whole crew of more than 65 cities in 17 countries, with all costs involved. So the decision of the destinations to visit is carefully evaluated before embarking on every tour. Generally, the chosen are large cities with a very broad base of potential audience to respond to target the shows: adults with a high purchasing power and interested in culture.
Their main source of revenue-the-ticket sales is one of the points which this strategy. About the high cost of tickets, which in Buenos Aires were $ 600, Gaétan Morency, Vice President of Global Citizenship for the company, explains: "We can not sell a Mercedes Benz at the price of a Volkswagen. " And is there in the quality of the shows, where the Cirque du Soleil makes a difference.
Since its inception in 1982, more than 200 people participated in the artistic development of the shows and each year the company pays u $ s 30 billion in royalties to those creative. "The financial interest of our company is always behind the building," said the manager.
Currently, some 1,500 employees, the total of 4,000 that the company has worldwide, work in "The Studio", as they call their headquarters.
Cirque du Soleil
how did to reinvent the business model of the circus?
Guy Laliberté, argues that what was made after taking an art form that people aged and had forgotten and therefore did not think he could offer something different from what they knew and that was when I own a creative concept, where in each event offers a unique value proposition different and special for acrobats, dancers and athletes display their skills. A new business model
First, the Cirque du Soleil is located quite far from the traditional concept of the circus. In fact, one of the keys to the success of the venture has been to redefine the concept of the show.
The circus was no longer a succession of acrobats, clowns and animals to become the representation of a story that progresses through the articulation of these specialties. Rhythm
innovation
Traditional circuses used to put on a show and then engaged to represent him worldwide. However, the Cirque du Soleil raised the strategic goal of creating a completely new show every year. To sustain this pace of innovation, Guy Laliberté has implemented a series of processes that have nothing to envy the most innovative corporations the world.
Resources Department According to human
Bieto, one of the major cornerstones of entrepreneurial success of Cirque du Soleil is in their practices recruitment and retention of talent.
The company recruits employees throughout the world and reasonably high salaries paid to members of employees of 35 nationalities who include former Olympic champions and former members of dance groups.
Since then, the diversity of cultural backgrounds can complicate coexistence. So, Cirque du Soleil implements courses teamwork and has an organizational culture that rewards collaboration instead of "star performers " of circuses traditional.
In short, said Bieto, the confluence of these factors has resulted in a highly successful company with 3,500 employees and valued at some 1,200 million, a success achieved through a delicate balance in the creative chaos of art and good practices corporate management.
Cirque du Soleil a new quality standard
A guarantee of success
can talk ad nauseam of new aesthetic and artistic CDUs , but I will highlight here are two elements of this experience. The business model has set a standard and especially his conception of quality and creative freedom as a working model of other innovative institutions as possible. BecauseCDUs is undoubtedly the most successful entertainment company in the world. And believe no, never only one of the shows was a flop or a semi-success, while 9 in 10 Broadway shows are lost or end with thunderous failures.
The reason for the undoubted success of this machine to generate high-quality experience is in the creativity of Franco Dragone who has directed 6 of the current proposals and especially in a business culture that loves the creativity and gives priority to safeguarding brand above all else.
an organizational culture based on innovation
If CdS has gone so far this is due first and foremost to promote an organizational culture that puts at the top of every decision and understood the project to a creative action, and defended death mark, even at the expense of easy profits, and any merchandising Beretta.
Sources:
Management Magazine. Special Research published 2005 (Creativity)
MATERIABIZ From the editors of Fortune Magazine
WINRED.COM (business ideas and networking) Ruben Roberto rich
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