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IBSM_case2_Circus and Cirque du Soleil

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by

Lai Ju Hui

on 10 December 2012

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Transcript of IBSM_case2_Circus and Cirque du Soleil

Strategic Management of MNCs Group 2
49733002 Chen, Pei-Ting
49733015 Chen, Yi-Chun
49833013 Wu, Wen-Yang
49833025 Kuo, Jui- Fa
49833033 Lai, Ju-Hui
49833036 Huang, Pei-Chia and Cirque du Soleil Case 2 - Circus Industry When the industry became competitive... 1. Pursuing the biggest name acts

2. Lowing cost

3. The kinds and quantities of animal

4. Scale of circus Five Forces Model Threat of New Entrants High economies of scale 3. Lower switching costs and capital requirement 1. Lack of brand awareness 2. Weakness of product
differentiation medium Bargaining Power of Customers low 1. Buyers’ information is insufficient

2. Small amount of buying Bargaining Power of Suppliers 1. Capacity of the show place

2. attraction of animal and performers high Threat of Substitute Products high 1. High strength of substitute

2. Buyer have low switching costs Competitive Rivalry within an Industry high 1. Diversity of rivals

2. Industry growth are slow

3. High fixed costs and switching cost

4. Lack of differences

5. Exit barriers Conclusion 1. limits their budget from eliminating some elements

2. differentiation strategy Performers Concessions animal Some Kept Eliminated stage ringmaster hawkers & stands $ buried names a ring The value curve for the classic circuses Irvin Feld's creantion of two troupes, enabled the show to extend each tour to two years yet maintain the ability to present a new show each year to its major audience. Inspiration improved its profits step by step invested heavily raise its profitability establish its position new show VIP tent attract powful fans without distounted tickets In the future Cirque du Soleil will create more value. The right side of the value curve will extend and it will create more Blue Ocean. Thank you for listening
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