The case describes the history and the business model of Cirque du Soleil (CDS). The case provides a rich discussion and analysis of Cirque du Soleil’s business model with a focus on how it interacts with the MGM Mirage. Le Cirque and MGM business models complement each other: MGM makes important investments in theaters tailored to CdS shows that are in the middle of the MGM casinos, CdS acts as a magnet for traffic for an exclusive clientele who spends large amounts of m .. . Read more »

The case describes the history and the business model of Cirque du Soleil (CDS). The case provides a rich discussion and analysis of Cirque du Soleil’s business model with a focus on how it interacts with the MGM Mirage. Le Cirque and MGM business models complement each other: MGM makes important investments in theaters tailored to CdS shows that are in the middle of the MGM casinos, CdS acts as a magnet for traffic for an exclusive clientele, the large amounts of money issues to the casino. CdS partnership with MGM was enormously profitable. This raises the question, why keep opportunism and not destroyed competitive advantage for both units: What belongs in CdS and MGM Mirage business models are so successful partnership led? The case is at a point where Daniel Lamarre (CdS CEO) is looking for new opportunities for growth. Lamarre considering the probability of success of the first inhabitants Cirque show in Asia, 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 is as profitable as their relationship with MGM Mirage
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from
Ramon Casadesus-Masanell,
Maxime Aucoin
Source: Harvard Business School
21 pages.
Release Date: 2 June 2009. Prod #: 709411-PDF-ENG
Cirque du Soleil – The Sustainable High-Wire Act of Building Partnerships HBR case solution