Cirque Du Soleil Harvard Case Solution & Analysis

Summary of Background and Facts

Cirque Du Soleil started off its operations in the year 1984. The group initially started off by performing outside the streets of Quebec City in Canada. In the initial phase, the circus group stated performing with a total number of 73 artists. However, the number has grown to 500 artists currently, with more than 2,100 employees approximately. The total number of spectators that are being served by the circus is more than 90 million spectators across the globe.

Moreover, the circus has been operating in four continents. The circus has basically expanded in itself in the mid 1990s which has further expanded and grown in the 21st century. The total number of 270 cities is being explored by the circus across the four continents. The accumulated sales revenue of the entertainment company has been quite a huge and significant amount which indicates that the group has been a successful entity.

Currently, the show has more than 4,000 employees that entertain the different cultures across 40 countries globally. Moreover, the circus company is one of the most successful entertainment companies in the Canadian market. The employees of Cirque Du Soleil speak more than 25 languages, which again indicate how diverse the portfolio of the company has expanded.

Recently, Cirque Du Soleil expanded itself and has been a part of various other businesses also, whereas it has diversified itself into commercial activities where it also includes the projects and merchandising.

Along with this, the circus even introduced in first feature film in the year 1999 “Alegria”. The movie was distributed and presented by the Sony Pictures. Cirque Du Soleil also opened its first complex which was established to serve the laboratory for Cirque du Soleil.

Statement of Core Problem

The major problem that has been identified in the case “Cirque Du Soleil” is that the company is unable to retain the most talented employees within the company. The reason is simple, the company has been entirely dependent on its artists and the creative people in the firm however, to run the company and the circus, a blend of artist and other employees is critical to the success which the circus has enjoyed in the past also. Therefore, the management of the circus is considering devising a strategy that shall help to retain and attract the most talented individuals in the market.

Secondary Problem

As the major or the core problem has been identified above, Cirque Du Soleil has been facing some other issues also which have again decrease the profit margins for the company in the recent past. As the case states, Cirque Du solely has been minting reasonable profits and revenues, however, the figures have declined to due to fact that the prices of tickets have increased considerably which has reduced the number of audience visiting the circus with their families.

Along with this, Cirque had to come up with new ideas and different tricks to stay a competitive force in the circus industry. Some employees in the company felt they were not getting enough facilities and benefits which could justify their stay within the Cirque.

Moreover, another issue which has been presented in the case indicates that the artists have been tired of traveling all along the year which has increased demotivation amongst them because they have to stay away from the family for long durations. To overcome these issues, however, the management developed the decentralized organizational structure, which backfired and the company had to revert back to the old model of operating through a centralized structure.

Along with this, another issue that has been faced by the circus company is the fact that the cultural differences have increased quite considerable amongst the artist because most of them come from diverse cultural backgrounds. Moreover, the language barriers have also been an issue amongst the artists at Cirque Du Soleil. People representing different culture, different heritage were a cause of concern because the management had to deal with them accordingly.

Lastly, another issue which has been identified in the case is the fact, that the lifestyle of Canada is quite different to other lifestyles, therefore, the artists coming from different parts of the world face issues adjusting to climate, food, etc. Along with this, young children were also a part of the Cirque which has been a problem because Cirque management has to deal with them in a rather different manner and in fact motivate them. These were the secondary issues at Cirque du Soleil....................

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