Cirque du Soleil is a unique and successful Canadian entertainment company which excites audiences worldwide with a dramatic mix of circus arts and street entertainment. Cirque du Soleil holds an uncontested market space, making existing competition in the traditional circus industry irrelevant. This report analyses the general, industry and competitive environment in which Cirque du Soleil operates. This is followed by an analysis of Cirque du Soleil's resources, capabilities, core competencies, and current business and corporate level strategies. Finally, appropriate strategies and recommendations will be identified for the future operation of Cirque du Soleil.
External Environment.
The external environment is critical to a firm's survival and success, and can create both opportunities and threats that affect a firm's strategic actions. The external environment can be divided into three main areas of general environment, industry environment and competitor environment (Hanson et al. 2011).
General Environment.
The general environment is composed of dimensions in broader society that influence an industry and the firms within it (Hanson et al. 2011). It consists of the following elements; economic, socio-cultural, global, technological, political and legal, and demographic. Cirque du Soleil is attended primarily by higher income residents at touring shows, and by tourists at resident shows. Their target audience generally consists of patrons with higher incomes, representing the middle to upper classes of most areas. Increased population density in major cities around the world has expanded the number of viable touring destinations for Cirque du Soleil shows (Hanson et al., 2011).
Cirque du Soleil operates within the entertainment industry. Cirque du Soleil tickets significantly more expensive compared to other entertainment options such as cinema or traditional theatre. Attendance at Cirque du Soleil shows is dependent on the disposable income of potential customers in a given city.