Le Cirque du soleil

Gilles Ste-Croix

And

 Le Cirque du soleil

[pic 1]

Term paper in the context of the module:

 ESG114-65 Doing Business in North America

Lecturer: Benoit Chalifoux, EMBA

Submitted by:

Paul Didier

DIDP07039701

Part 1: Factual Description of the entrepreneur

Gilles Ste-Croix is a Canadian entrepreneur and the vice president and co-creator of Cirque du Soleil. He started Cirque du Soleil with Guy Laliberté

Like many entrepreneurs from Quebec, Gilles Ste-Croix is from a middle-class family. At the age of 16 he left home because he had the choice between the army or being a priest, the only studies that could have been paid by his family. He opted for freedom knowing that he has the curiosity to learn and go forward

He started his life as a Tabaco picker in Ontario, then he lived a bohemia life for a little while on the pacific coast, after that he became an architect in Vancouver and finally, when he was 29 he created a street theater called “Les Echassiers de baie saint-paul”. This theatre troupe attracted the autodidact Guy Laliberté with whom he will create later the Cirque du Soleil. Laliberté was more in charge of the business aspect of the company while Ste-Croix was more in the shadow taking care of the ideas and the artists.

In order to ensure a good quality of life to his family, Gilles Ste-Croix has never been co-owner of the Cirque du Soleil. He preferred to be an employed founder of it as artistic director, creation director and casting director for 30 years. According to him money is not a source of happiness but life itself is and it was not a problem for him to let go 1,9 milliards of dollars when the company was sold.

He wanted to create a company focused more on the human than the economic system.

Gilles Ste-Croix is a visionary, a man of conviction with a big heart. He has always militated to recruit and integrate talented Quebec creators into show creation teams, from musical composition to scenography, through costumes and special effects. He always worked with young artist that he encouraged and protected through his experience

Part 2: Analysis of the company & the Business Model of the Company.

Founded 26 years ago in Montréal, Le Cirque du Soleil is today a world known company who has grown into a global entertainment business. Its performances have been seen by over 100 million spectators in nearly 300 cities worldwide. It is a multi-level production without the menagerie of exotic animals yet is one that captures the magnificence of the human form, agility, and creativity. Le Cirque du Soleil renewed the activity sector codes that was in declined at that time, it conquered also a new public. Its capacity of innovation and its development strategy are considered now as an example.

Today the company employed more than 5000 people across the world among which 1300 artists. It currently presents 18 thematic productions including 10 shows touring around the world and 8 live shows in Las Vegas and Orlando. Other projects are in progress in Dubai, New York and Macao under the form of touring shows.

The company distinguish itself by a different artistic vision, especially with the absence of animals during shows, and a focus on the comedians and acrobat’s spectacles.

The company also develops derived activities from its shows like organization of other events, audiovisual productions, merchandising, licensing). The company is also an important player in social and cultural action. Calling itself a “Citizen Circus” it participates in the financing of association in twenty different countries and has also created an international program called “Cirque du Monde” to help young people in difficulties. It participates also in the issue of sustainable development with the One Drop foundation, the mission is to fight poverty by giving access to water to people in need.

Key partners

The Cirque du Soleil did a first partnership with the Las Vegas Casinos and the Disney park of Orlando then Tokyo to perform fixed shows.

It obtains rights to create spectacle on the Beatles, Elvis Presley and Michael Jackson.

The company is currently working on a 3D movie with James Cameron and Andrew Adamson. They are planning to do several movies.

Cirque du Soleil and MGM, a strategic partnership

MGM Mirage was an important step for the growth of the company. The hotel group invested in building and production in which the circus needed to grow.

MGM Mirage gave 10 times as much cash as the circus, but the circus had entertaining ideas so both parties played its unique skills and attributes

Key Activities and Value Propositions

It’s value proposition is “More for the same”

Cirque du Soleil eliminated the age-old formula of clowns, lion trainers and animal shows to replace it with shows based on unique themes, redefined environment, original and live soundtracks, costume and sets. Cirque du Soleil created an entirely new customer value offering, created a new market with the associate profit.

Strategy

When it started the “Cirque du Soleil” has offered an innovation of differentiation for the clients. The company kept the acrobatic shows the theatrical scripting, makeup etc. The changes have been made in the innovation of the marketing and economical model level, it opted for a blue ocean strategy.

The blue ocean strategy is the opposite of the red ocean one which refers to a “war of prices” with a strong competition, boundaries. A blue ocean strategy strives to create a new demand in a nonexistent strategic space

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