Creating a Cluster around a Clown: The Montreal Circus Cluster (A)

Berrone, Pascual; Blázquez, María Luisa; Diego, Enrique de

Product #:SM-1597-E

Supplier:IESE Publishing

Discipline:General Management

Setting:Canada, 1987

Details:Case (PDF) • 2 pages • 2013-09-13

Subjects:

Geography:

Canada North America

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The case examines the situation of Cirque du Soleil in its early years. Despite initial success, Guy Laliberté, founder and CEO of Cirque du Soleil, is facing a number of challenges, including aspects such as increasing competition, access to the pool of talent, location and growth. All of these elements are in Laliberté's mind just before meeting with Jean Doré, the mayor of Montreal. Laliberté thinks that it will be a great opportunity to ask for support, but he doesn't know exactly what to ask for. At the same time, Doré is preparing the city's strategic plan and is wondering whether Montreal could benefit from Cirque du Soleil's image and success. He does, however, have some lingering concerns.

Learning Objectives

This case can be used: o To introduce students and participants to the traditional five forces industry analysis (Porter's five forces). o To link the industry analysis with the concept of strategic segmentation. o To show that companies can work to look for more attractive businesses and to modify or avoid tough industry conditions. o To analyze Porter's diamond.