Cirque du Soleil–The High-Wire Act of Building Sustainable Partnerships Harvard Case Solution & Analysis

The case describes the history and business model of Cirque du Soleil (CdS). The case allows for a rich discussion and investigation of the business model of Cirque du Soleil with an emphasis on how it interacts with that of MGM Mirage. MGM's business models and Le Cirque complement one another: significant capital investments are made by MGM in theaters tailored to the shows that are at the center of MGM casinos of CdS, CdS acts as an attraction for traffic for a selected clientele that spends huge amounts of money at the casino. CdS's affiliation with MGM has been enormously profitable.

This raise the question of why hold up and competitive advantage has not been destroyed by opportunism for both entities: What features in CdS and MGM Mirage's business models have resulted in such a successful partnership? The case is set at a juncture where Daniel Lamarre (CdS's CEO) is seeking new opportunities for growth. Lamarre is pondering its entry in the Macao marketplace, the likelihood of success of Cirque's first resident show in Asia at Tokyo Disney Resort, and a fresh venture with two subsidiary of Dubai World, the sovereign wealth fund of the Emirate. The question remains: Can Le Cirque explore a new model of complementary relationships which will be as lucrative as its relationship with MGM Mirage?

PUBLICATION DATE: June 02, 2009 PRODUCT #: 709411-HCC-ENG

This is just an excerpt. This case is about STRATEGY & EXECUTION

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