Cirque du Soleil is considering expanding into Asian markets like China through touring shows, limited-run shows, resident shows, and partnering to develop resorts. A resort in Shanghai is recommended to diversify revenue and tap new opportunities in emerging Asian markets with strong economic growth and an increasing affluent population. Financial projections estimate the Shanghai resort partnership could generate over $100 million in annual profit within 5 years.
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
18. International reputation and experienceEnable Diversification Brand Building and Creating Markets 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
34. High expected demandLack 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
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
47. The 49 hectare integrated resort will cost S$600 million solely for land
48.
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
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