Cirque du Soleil is the subject of this year’s selected case! Over the last 24 hours, the teams have been analyzing the entertainment company’s partnership with MGM casinos, while the Cirque looks to enter new markets at Tokyo Disney Resort, Macao and Dubai World. They will have to recommend a sustainable model that can be as profitable as its relationship with MGM Mirage.
The following summary is officially made available to the public attending the presentations as of Saturday March 27 at 9:00am, when the first two teams are set to present.
The case describes the history and business model of Cirque du Soleil (CdS). The case allows for a rich discussion and analysis of Cirque du Soleil’s business model with an emphasis on how it interacts with that of MGM Mirage. Le Cirque and MGM’s business models complement one another: MGM makes important capital investments in theaters tailored to CdS’s shows that are located in the middle of MGM casinos, CdS acts as a magnet for traffic for an exclusive clientele that spends large amounts of money at the casino. CdS’s partnership with MGM has been tremendously profitable.
This raises the question of why hold up and opportunism have not destroyed competitive advantage for both entities: What features in CdS and MGM Mirage’s business models have resulted in such a successful partnership? The case is set at a juncture where Daniel Lamarre (CdS’s CEO) is looking for new opportunities for growth.
Lamarre is pondering the likelihood of success of Cirque’s first resident show in Asia at Tokyo Disney Resort, its entry in the Macao market, and a new partnership with two subsidiaries of Dubai World, the sovereign wealth fund of the Emirate. The question is: Can Le Cirque find a new model of complementary relationships that will be as profitable as its relationship with MGM Mirage?
The presentations will be open to the public, and will run from 9am to 5:30pm at the Desautels Faculty of Management, 4th Floor. The winning teams will be announced online by Sunday morning.