Paradigm Shift
Industry: Circus Industry
Myth: The end-users of circus are children, and circuses can be run only according to fixed norms.
16th June, 2009 marked the 25th anniversary of a company that managed to reinvent an entire industry. With one time accordion player, stilt-walker and fire-eater, Guy Laliberte as the CEO, Cirque du Soleil managed to bring about a paradigm shift in the circus industry. From a group of 20 street performers at its beginnings in 1984, Cirque du Soleil is now a major Quebec-based organization providing high-quality artistic entertainment. The company has more than 4,000 employees from over 40 different countries, including 1,000 artists.
However, when Cirque first made its debut in 1984, the circus industry was already in a decline. Most circuses focused solely on children and followed the model set by Ringling Bros. and Barnum & Bailey Circus in 1919. But with other forms of entertainment being readily available, children were no longer interested in visiting the circus, which had the same old acts. There was also an increasing sentiment against the use of animals in circuses by animal rights groups. With decreasing audiences and poor revenue and profits circus industry appeared unattractive.
Laliberte and Guy Caron, the artistic director of cirque, had a different vision for their circus. Their idea was to create a circus with neither a ring nor animals. The rationale was that the lack of both of these things draws the audience more into the performance. They shifted the spotlight from the traditional end-user to an adult buyer group who were prepared to pay a price that is several times as expensive as traditional circuses for their unprecedented entertainment experience. Their competition was no longer the shrinking circus market. Using the concept of "circus for adults", Cirque du Soleil managed to reinvent circus.
The reason for Cirque du Soleil’s success is that they managed to change their frame of thinking. After identifying that the three core elements of any circus were the tent, the clowns and the acrobatic acts, they did away with the expensive animal acts and launched shows based on unique themes, soundtracks, costumes and sets. Cirque's 'one of a kind' shows resembled theatric and ballet performances rather than the traditional circus shows. With their shows ‘Reinvent the Circus’ and ‘Nouvelle Expérience’, Cirque shattered all previous records for ticket sales. It took the concept of circus from the big top tent to the theater. Cirque du Soleil forced other circuses to shift from carrying out acts to delivering performances and bringing about changes in their mental attitude.
Till date Cirque du Soleil has not stopped breaking mental models. Currently Cirque has 19 different shows running across the world and each one offers something that has never been seen before. For example its show ‘O’, which broke the myth that circus performances take place only on solid ground. ‘O’ is centered around a 1.5 million-gallon tank of water built inside the Bellagio Hotel in Las Vegas. World-class acrobats, synchronized swimmers, divers and characters perform in, on, and above water to create a breathtaking experience.
In the past few years Cirque du Soleil has been developing new business models. Cirque now creates original and innovative content for television and DVDs. It also organizes private gatherings and is making forays into the hospitality sector. Thus Cirque du Soleil is trying to expand its boundaries to span across the entire entertainment spectrum.
Cirque du Soleil succeeded because it realized that to win in the future, companies must stop competing with each other. It decided to rework the rules of the industry and focus on a new segment of users. And most importantly it catered to exactly what that group of customers needed.
Reference:
Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by W. Chan Kim , Renée Mauborgne
http://www.cirquedusoleil.com

