Major part of circus was dominated by Ringling Bros. and Barnum & Bailey Three-ring circus Shows were only tweaked versions of previous acts with little/no new content Slow and declining industry growth
Decreasing interest among audiences Emergence of TV, movies as substitutes
Supplier Power
Competition for popular acts increased supplier (animal trainers, famous performers) power, costs
Competitive Rivalry
Two Big American families had more than a century of circus tradition (Cost of exit, Equal size, similar strategies) Most of the circuses offered more or less the same content with little innovation and competed in a red ocean
Buyer Power
Audience had a wide range of entertainment to choose from. Audience faced little switching cost.
Substitutes
Audience had a variety of substitutes to choose from like: 1. Movies 2. Theatre 3. Opera 4. Video games etc
No innovation 3-Ring Circus Unethical use of animals Death defying stunts that people did not really appreciate Lack of theme Ordinary venues Concession sales
Create
Theme Multiple productions Original Score and dance Permanent/Resident shows
Raise
Unique Venue Intellectual component Refined environment
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Value Curve
High
Low
Traditional Circus Opera Cirque du Soleil
Strategy : Products
Touring shows (traditional business)
Colorful big tops & arena shows Lifecycle strategy with tours in various continents for many years
Other products
Merchandise sales (10% revenue) Documentaries, DVDs of shows, TV shows Movies
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Increase buyer value by offering Theme Based shows More importance on innovation and creativity Blue ocean strategy of creating new market by partnering with resorts and theme parks Improving circus industry by attracting corporate clients and adults Multiple productions - giving people reason to visit CDS more often
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Environment policies
usage of materials used for the shows
Diversification
Creating local content suiting the local audience as the industry grows to other geographies (e.g. tailored content for middle east)
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