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MMICC 2010 - 2nd Place - HKU

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  • * Should use animition to fly in the chart for declining growth rate as well
  • Transcript

    • 1. CIRQUE DU SOLEILA Growth Capturing Strategy
      Team 6 – HKUST
      Alex Wong | Jasmine Ling | UlaXue | Vivien Yip
    • 2. Agenda
      Situational Analysis
      Market Analysis
      Recommendations
      Financials
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 3. Strengths
      • Brand name: 15 shows with more than 70M tickets sold
      • 4. Creativity: Established structured creation process
      Weaknesses
      Opportunities
      Threats
      Situational Analysis
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 5. Weaknesses
      • Lack of diversification:
      Las Vegas Resident shows for 50+% total revenue and much great portion of profit
      Strengths
      Opportunities
      Threats
      Situational Analysis
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 6. Weaknesses
      Strengths
      • Saturated market in North America:
      US tourism industry growth rate: -5%
      Opportunities
      Threats
      Situational Analysis
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 7. Strengths
      Weaknesses
      • Expand into emerging
      markets in Asia
      • Expand the creative platform and leverage on brand name
      Threats
      Opportunities
      Situational Analysis
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 8. Strengths
      Weaknesses
      Heavy reliance on Les Vegas shows
      Brand name
      Creativity
      Emerging markets
      Expand the creative platform
      Saturated market in North America
      Opportunities
      Threats
      Situational Analysis
      Need for Diversification
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 9. Affluent Population
      Discretionary spending of affluent population in the three biggest cities in China: Reach 4.9 billion USD in 2015
      Economy Growth
      GDP growth (AP GDP growth of 7% in 2010 vs. 2.7% globally, China average 10% growth)
      Potential for Asia Markets
      2010 tourism industry estimates: Asia rise 4%, North America -5%, Europe unchanged (by IPK international)
      Rising Tourism Industry
      Lack of sound brand of entertainment show troupes
      Market Not Mature
      Situational Analysis | Market Analysis| Recommendations | Financials
    • 10. Affinity to Popular Culture
      Government Lead
      Spending
      Pattern
      Asian Market Analysis
      On average, a tourist will stay in Macau for 1.23 days
      Separation of Gambling and Entertainment
      Situational Analysis | Market Analysis| Recommendations | Financials
    • 11. Spending
      Pattern
      Affinity to Popular Culture
      Asian Market Analysis
      Government Lead
      China World Expo in Shanghai
      Singapore government actively called for bids for the two casino resorts
      HK government`s involvement in HK Disneyland
      Thai government boosted the “Amazing Thailand, Amazing Concept” value, with exemption of visa fees and reduced takeoff and landing fees
      Situational Analysis | Market Analysis| Recommendations | Financials
    • 12. Government Lead
      Spending
      Pattern
      Asian Market Analysis
      Affinity to Popular Culture
      Disneyland, Universal Studio, Hollywood movies and Western-style entertainment diffused in Asia
      New popular trends often emerge and spread over
      Situational Analysis | Market Analysis| Recommendations | Financials
    • 13. Asian Market Analysis
      Affinity to Popular Culture
      Government Lead
      Spending
      Pattern
      Leverage on popularity of Western culture
      Cooperate with government to gain support and backup
      Rethinking partnership in Asia
      Casinos may not be the best
      Situational Analysis | Market Analysis| Recommendations | Financials
    • 14. Touring Shows
      Expand footprint in Asia
      Limited Runs
      Resident Shows
      Branding and recognition
      Resort in Shanghai
      Recommendations
      Asia
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 15. Staged Performance in Asia
      Asian Markets
      Cirque du Soleil
      • Still immature and not well established
      • 16. Popularity among customers to be improved
      • 17. Root and core competence
      • 18. International reputation and experience
      Enable Diversification
      Brand Building and Creating Markets
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 19. Touring Shows
      Existing Schedule
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 20. Touring Shows
      Start and extend the tour in Asia
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 21. Limited-Run Shows
      • Shorter show time: 1.5 hours
      • 22. Mix of creativity and legacy
      • 23. Revamp or extract the most exciting components from previous successful shows
      • 24. Innovation on storylines
      • 25. New use of existing costumes and props
      • 26. Strong marketing and PR efforts
      • 27. Relate to CSR or festive events
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 28. Limited-Run Shows
      Drawing attention
      Create scarcity
      Creative challenge
      Gone-is-gone
      Mix-and-match
      Marketing and PR
      Impacts
      Limited-run Shows
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 29. Resident Shows
      7 shows in Las Vegas
      Only at Macao and Tokyo in Asia
      Room for further growth
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 30. Expansion into Asia
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 31. Comprehensive Experience: Resort
      Cirque du Soleil
      Property Developer
      Government
      Artistic conceptprovider and stage performer
      Promotion, land and infrastructure support
      Shopping malls, hotel, theatre, restaurant, spa, and entertainment facilities
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 32. Strategic Advantages of Shanghai
      Complexes Failure in London
      No such obstacles in Shanghai
      • Government support
      • 33. Industry preference for upscale projects
      • 34. High expected demand
      Lack of creative control
      Slow project development
      Aggressive scale
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 35. Strategic Advantages of Shanghai
      Local government
      Economic indicators matter
      Prefer land use for tourism
      Real estate developers
      Face restrictions by central government
      Switch from residential projects to resort
      Expected demand
      Shanghai: Important tourist destination
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 36. Cirque du Soleil and Resort
      Wholly responsible for art design and creative content
      Instil Cirque du Soleil feeling into every point of contact with customers
      Hardware: Interior design, decorations, beds, costumes
      Software: Interactions and atmosphere
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 37. Cirque du Soleil
      Government and Developer
      Partnership Deal Structure
      Show
      100% (Property Construction)
      (Property Construction)
      -
      (Production)
      50% (Production)
      50% (Production)
      (Capital Investment)
      50% Box Office
      50% Box Office
      Box Office
      (Creative Royalty)
      100% Creative Royalty
      -
      (Theatre Operations)
      50% (Theatre Operations)
      50% (Theatre Operations)
      (Show Operations)
      50% (Show Operations)
      50% (Show Operations)
      Other Resort Revenue
      3% Resort Revenue
      97% Resort Revenue
      Operating Profit
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 38. Timeline for Resort Partnership
      Year
      09
      10
      11
      16
      12
      13
      14
      15
      Issues
      Negotiation
      Design and Construction
      Show production
      First Phase performance
      Review
      2ndPhase Performance
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 39. Revenue
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 40. Profit
      USD Million
      Situational Analysis | Market Analysis | Recommendations | Financials
    • 41. Situations
      Markets
      Strategy
      Impact
      Asian markets with most opportunities
      Different business landscape
      Creativity and brands
      Over-reliance on Las Vegas
      Uncertain US tourism outlook
      Potential of emerging markets
      Touring shows into Asia
      Limited-run shows to stir up markets
      Resort collaboration
      New revenue sources
      Operations diversification
      Tap the potential in Asia
      New inspirations for creativity
    • 42. Backup Slides
    • 43. Touring Shows
    • 44. Resident Shows
    • 45. All Shows
    • 46. Resorts World Sentosa
      • Built by Malay’s GentingBhd for $4.4 billion opening on March 2010
      • 47. The 49 hectare integrated resort will cost S$600 million solely for land
      • 48. S$1.6 billion on Southeast Asia’s first Universal Studio theme park called Universal Studios Singapore.
    • Marina Bay Sands Casino
      Opening: Apr 2010
      By Las Vegas Sands
      Fixed $1.2 billion cost of 6m sq. Feet, The most expensive casino in the world
      Three hotel towers with 2,500 rooms (>52,000 people)
    • 49. Singapore Casino
      Visitor arrivals in Singapore rose 24% in February from 2009 since its first casino opening
      Hotel occupancy rose 4.9
      Each casino expected to contribute 0.5% to Singapore’s GDP by 2015
    • 50. Asian Markets
      • Economic growth
      2010
      Source: AllianceBernstein
    • 54. Shanghai
      Rapid development and active brand building
      Financial center and tourist hub in Asia
      Welcome foreign investment
      World Expo 2010
    • 55. Affluent Population in Shanghai
      Defined as earning US$6,000 to US$25,000 per year, numbers grew from practically zero over a decade ago to estimated 87 million in 2005; 317 million in 2015
    • 56. Resort Partnership
      Upscale Property Developers in China
      With experience in running shopping malls, hotels and entertainment facilities
    • 57. Financial Details
    • 58. Financial Details
    • 59. Financial Details
    • 60. Financial Details