Cirque Du Soleil

Cirque Du Soleil was founded by Guy Laliberte, Gilles Saint-Croix and Daniel Gauthier. The firm blends opera, dance, theatre and circus with live music, excellent choreography and amazing pyrotechnics. The firm intends to present the circus in a different way which moves people’s emotions and takes them to a happy peaceful world. The firm did not face much direct competition until very recently. Therefore now, the firm intends to improve and sustain their current position and move in new areas of similar kind of business.

External and Internal analysis
The external analysis comprises of industry analysis which includes the competitors and financial analysis. Cirque du Soleil started off as a street band and now is a very popular circus that blends opera, dance, and theater and is very popular since last twenty years. They performed in 90 cities and achieved many awards and still have a lot of demand for shows and there is also high demand for jobs, these shows that they have strong product features and brand positioning. They make small profit ranging from 15 to 20%. However it has local competitors who have international recognition and also foreign competitors. Even though these competitors are not very strong, they do create problems to retain top performers and create issues regarding payment.
The financial analysis reveals that one problem the company is facing to diversify and expand its business is due to the lack of internal financial resource. Although the company has sufficient liquidity to maintain and sustain its position but in order to expand its business, the company requires large sums of money which it is unable to generate internally. The company is looking for partners and even came to arrangements twice with two institutions but both times the projects failed once due to exclusivity disagreements and the other time due to economic downturn.
Analysis on resources and capability show that they have a very good Human Resource Management that...