Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B)
This is the second of a two-case series. Cirque du Soleil very successfully entered a structurally unattractive circus industry. It was able to reinvent the industry and created a new market space by challenging the conventional assumptions about how to compete. It value innovated by shifting the buyer group from children (end-users of the traditional circus) to adults (purchasers of the traditional circus), drawing upon the distinctive strengths of other alternative industries, such as the theatre, Broadway shows and the opera, to offer a totally new set of utilities to more mature and higher spending customers. **ecch European Case Awards Category Winner 2008**
Authors :: W. Chan Kim, Renee Mauborgne, Ben M. Bensaou, Matt Williamson
Swot Analysis of "Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B)" written by W. Chan Kim, Renee Mauborgne, Ben M. Bensaou, Matt Williamson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Circus Cirque facing as an external strategic factors. Some of the topics covered in Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) case study are - Strategic Management Strategies, Competitive strategy, Innovation, International business and Organizational Development.
Some of the macro environment factors that can be used to understand the Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) casestudy better are - – increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, cloud computing is disrupting traditional business models,
talent flight as more people leaving formal jobs, increasing commodity prices, etc
Introduction to SWOT Analysis of Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Circus Cirque, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Circus Cirque operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) can be done for the following purposes –
1. Strategic planning using facts provided in Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) case study
2. Improving business portfolio management of Circus Cirque
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Circus Cirque
Strengths Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Circus Cirque in Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Circus Cirque are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High brand equity
– Circus Cirque has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Circus Cirque to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Circus Cirque has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Low bargaining power of suppliers
– Suppliers of Circus Cirque in the sector have low bargaining power. Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Circus Cirque to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Circus Cirque is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by W. Chan Kim, Renee Mauborgne, Ben M. Bensaou, Matt Williamson can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to recruit top talent
– Circus Cirque is one of the leading recruiters in the industry. Managers in the Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Circus Cirque is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Circus Cirque is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Circus Cirque has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Sustainable margins compare to other players in Organizational Development industry
– Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) firm has clearly differentiated products in the market place. This has enabled Circus Cirque to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Circus Cirque to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Circus Cirque is present in almost all the verticals within the industry. This has provided firm in Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Circus Cirque digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Circus Cirque has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) are -
Aligning sales with marketing
– It come across in the case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) can leverage the sales team experience to cultivate customer relationships as Circus Cirque is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B), is just above the industry average. Circus Cirque needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B), it seems that the employees of Circus Cirque don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Increasing silos among functional specialists
– The organizational structure of Circus Cirque is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Circus Cirque needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Circus Cirque to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Circus Cirque needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High bargaining power of channel partners
– Because of the regulatory requirements, W. Chan Kim, Renee Mauborgne, Ben M. Bensaou, Matt Williamson suggests that, Circus Cirque is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Lack of clear differentiation of Circus Cirque products
– To increase the profitability and margins on the products, Circus Cirque needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Circus Cirque has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Low market penetration in new markets
– Outside its home market of Circus Cirque, firm in the HBR case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Circus Cirque has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Circus Cirque is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Circus Cirque to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Circus Cirque can use these opportunities to build new business models that can help the communities that Circus Cirque operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Building a culture of innovation
– managers at Circus Cirque can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Circus Cirque can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Circus Cirque can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Circus Cirque can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Circus Cirque can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Circus Cirque can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Learning at scale
– Online learning technologies has now opened space for Circus Cirque to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Circus Cirque to increase its market reach. Circus Cirque will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Circus Cirque is facing challenges because of the dominance of functional experts in the organization. Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Loyalty marketing
– Circus Cirque has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Circus Cirque can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Circus Cirque in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Threats Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) are -
Regulatory challenges
– Circus Cirque needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Circus Cirque in the Organizational Development sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Circus Cirque is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Circus Cirque can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Circus Cirque in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Circus Cirque needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Consumer confidence and its impact on Circus Cirque demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Stagnating economy with rate increase
– Circus Cirque can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Circus Cirque business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Circus Cirque has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Circus Cirque needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Circus Cirque.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Circus Cirque can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Even a Clown Can Do It: Cirque du Soleil Recreates Live Entertainment (B) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Circus Cirque needs to make to build a sustainable competitive advantage.