2. AGENDA 2010
I. Situational Analysis
II. Current Objectives
III. Executive Summary
IV. Recommendations
V. Financial Analysis
VI. Implementation
VII. Q&A
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
3. SITUATIONAL ANALYSIS| CIRQUE DU SOLEIL VALUES 2010
Core Values
Creativity: Never compromise creativity; full creative control
Exclusivity: We don’t bring the show to you; each location has its own show
Expertise: Concentrate on what we are good at without stretching
ourselves too thin
Mission Goal: Pursue high-growth markets and opportunities without
compromising on any of our core values
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
4. SITUATIONAL ANALYSIS| FAILED PROJECTS 2010
Past failed projects violated core values
Failed Project Reason for Failure Core Value Violated
London Battersea Lack of creative control;
Slowness of development
Creativity
Project
Montreal Cirque Lack of expertise in new
industries eroded investor Expertise
Complex
confidence
Columbia Pictures
Limited creative Creativity
Battleship involvement
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
5. SITUATIONAL ANALYSIS| CURRENT ISSUES AND OBJECTIVES 2010
Current Objectives
Select Compatible Partners for show expansion
Show Distribution: Resident vs. Arena vs. Big top
Enter new industries and overcome inexperience issues
Avoid Brand Cannibalization in Vegas
Build revenues in existing locations
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
6. EXECUTIVE SUMMARY| RECOMMENDATION OVERVIEW 2010
Expand Develop Attract
Leverage existing
Enter nightlife
partnership with MGM Launch Reality TV
business in areas
Mirage to develop Series to build brand
with established
new resident shows recognition
presence
in attractive cities
Recommendation 1 Recommendation 2 Recommendation 3
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
7. RECOMMENDATION 1| RESIDENT VS. TOURING 2010
Objective: Grow shows in the Resident segment
Resident Shows Touring Shows
Profitability Higher Margins Lower Margins
Occupancy 90-95% 80%
Break-Even 60% 65%
Highest Ticket Price $150 $100
Shows Per Year 480 shows 324 shows
Although resident shows require a larger capital expenditure, they deliver
more value in the longer term due to higher profitability
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
8. RECOMMENDATION 1| PARTNERSHIP CRITERIA 2010
Four Criteria for
Establishing Partnerships
Creative freedom
Sustainability
Socially Responsible
High ROI
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
9. RECOMMENDATION 1| PARTNERSHIP CRITERIA 2010
MGM is a trustworthy, experienced partner to continue resident expansions
Four Criteria for
Establishing Partnerships
Creative freedom
Sustainability
Socially Responsible
High ROI
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
10. RECOMMENDATION 1| EXPAND MGM PARTNERSHIP 2010
Cirque du Soleil should expand into Abu Dhabi, Atlantic City, and Macau
City Tourism Growth Tourist Shopping Room for CdU Show
Expenditures Establishment
Macau
Abu Dhabi
Atlantic City
Detroit
Detroit is not a viable expansion due to low tourism growth
and low revenue potentials
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
11. RECOMMENDATION 1| RESIDENT EXPANSION BEYOND MGM 2010
Several cities of high potential exist that are not currently in
MGM`s plans
Potential Tourism Revenue
Expansion in 2007 ($Can)
LEGEND
London $12.1 Billion LONDON
NEW YORK CITY
New York City $28.9 Billion LOS ANGELES
Los Angeles $13.3 Billion BERLIN
SYDNEY
Berlin $11.3 Billion SHANGHAI
Sydney $9.7 Billion
Shanghai $39.0 Billion
Cirque du Soleil should strongly consider future establishments in Shanghai,
New York City and Los Angeles due to high tourism revenue and traffic
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
Source: www.ChinaDaily.com Source: www.sflnc.com
12. RECOMMENDATION 1| ACCOMPLISHMENTS 2010
Current Objectives
Select Compatible Partners for show expansion
Show Distribution: Resident vs. Arena vs. Big top
Enter new industries and overcome inexperience issues
Avoid Brand Cannibalization in Vegas
Build revenues in existing locations
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
13. RECOMMENDATION 2| EXPANSION INTO NIGHT LOUNGES 2010
Create a unique night long Cirque du Soleil experience that maintains
Cirque`s image as a creative, exclusive brand
"Only 20% actually stay at the casino hotel but show goers drop an average
of $30 apiece [elsewhere]" -- B.Baldwin
Lounge Theme Marketing Strategy
`Soleil by Night` 2 Prong Strategy
• Masquerade themed lounges • Cross-selling tickets
• Showcase colorful decor & between show and club
latest technology • Synergies in marketing
• High ceilings and acrobats expenses
throughout • Promote club in current
shows
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
14. RECOMMENDATION 2| EXPANSION INTO NIGHT LOUNGES " SOLEIL BY NIGHT " 2010
Create Cirque du Soleil themed night clubs to increase avg. expenditure
per consumer and avoid cannibalization of existing shows.
Target Location Criteria Short Term vs. Long Term
Length Place Partner
Location with Cirque
du Soleil Show Short Term Vegas
Places where people
stay overnight
Long Term •Atlantic City
Places with lively night
•Macau
life •Abu Dhabi
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
15. RECOMMENDATION 2| IMPLEMENTATION CASE IN LAS VEGAS 2010
Identify poor performing, low profit generating lounges and leverage
partnerships to rent that venue
Case Study: Prive and Living Room Nightclub in Las Vegas
Criteria Met:
Venue located 1 block from MGM hotel
Low profitability, threat of bankruptcy with
pressure to sell or close
Large venue with in place infrastructure for Cirque
du Soleil design
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
16. RECOMMENDATION 2| ACCOMPLISHMENTS 2010
Current Objectives
Select Compatible Partners for show expansion
Show Distribution: Resident vs. Arena vs. Big top
Enter new industries and overcome inexperience issues
Avoid Brand Cannibalization in Vegas
Build revenues in existing locations
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
17. RECOMMENDATION 3| TALENT REALITY SHOW ‘THE ARTISTE’ 2010
Strengthen presence on television media and increase brand
awareness among new demographics
The Artiste: Become a part of the Next Cirque du Soleil Show...
The Basis Location Logistics
• Weekly challenges are USA: there is a large Cirque du
assigned to candidates and Soleil presence in North
weekly elimination rounds America and huge trend in large
procure finalist reality show viewership
• Cirque du Soleil staff will
coach candidates prior to Network Logistics
challenge events
ABC Network : ABC is already a
subsidiary of Disney, an existing
partner
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
18. RECOMMENDATION 3| TALENT REALITY SHOW CASE STUDIES 2010
Similar reality shows with parallel structure have enjoyed success
The Apprentice The Ultimate Fighter
• The Apprentice applicant • Applicants are pre-selected
process through application process
• Donald Trump assigns • Elimination fights occur
weekly challenges to weekly
candidates
• Aired 15 episodes per • Aired 129 episodes total
season for 4 seasons • Boosted an esoteric "UFC"
• Earned #7 in number of brand into mainstream
viewers, with 20.7M viewers viewership and recognition
weekly
• Has greatly increased brand
recognition of the Trump
brand and logo
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
19. RECOMMENDATION 3| ACCOMPLISHMENTS 2010
Current Objectives
Select Compatible Partners for show expansion
Show Distribution: Resident vs. Arena vs. Big top
Enter new industries and overcome inexperience issues
Avoid Brand Cannibalization in Vegas
Build revenues in existing locations
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
20. IMPACT ANALYSIS 2010
IRR Payback
Single Resident Expansion 1-Yr: 94% 5-Yr: 216% 0.52 Years
Single Nightclub Expansion 2-Yr: 24% 5-Yr: 64.9% 1.43 Years
Reality Show 1-Yr: 30% 2-Yr: 331% 0.77 Years
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
21. CONCLUSION| IMPLEMENTATION TIMELINE 2010
Task Year 0 Year 1 Year 2 Year 3 Year 4 Year 5+
Recommendation 1: Residence Expansions
Development of program
Begin partnership talks with MGM
Construction of theater
Acrobat training
Hiring of acrobats and technicians
Promotion of the event
Begin showing
Recommendation 2: Club "Soleil Night"
Development talks with MGM
Secure rental of club venue
Promotion of club
Hiring of staff
Evaluate success
Expand nightclub reach to branches
Remodel club venue
Recommendation 3: Reality TV Show
Develop program proposal and business model
Establish deal with a potential network
Hold auditions and hire cast and technicians
Filming of program
Airing of program
Promotion through advertisement of show
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
22. CONCLUSION| RECOMMENDATION SUMMARY 2010
Expand Develop Attract
Expand Into New Markets ``Soleil by Night`` The Artiste
Access Spending ⁄Location Occupancy Rate
Creativity . Sustainability . Profitability
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
23. Q&A 2010
Content Appendix Slides (cont.)
Situational Analysis - Values Why Not Expand Touring Shows
Situational Analysis – Failures Arena Over Big Top
Situational Analysis – Current Issues Cirque du Soleil`s Value-add for Casinos
Executive Summary Top 10 Gambling Getaways
Recommendation 1 Why Cirque Complex Did Not Work
Recommendation 2
Recommendation 3 Financials
Impact Analysis Historical Revenue & Ticket Sales Data
Conclusion – Summary Show Profit Model
Implementation Timeline Show Break-Even Analysis
Resident Show Expansion Model
Appendix Slides Nightclub ROI (1)
Risks & Mitigations (Rec 1) Nightclub ROI (2)
Risks & Mitigations (Rec 2) Nightclub Revenue Projection
Risks & Mitigations (Rec 3) Nightclub Operating Profit Projection
Partnership Implementation Reality Show Revenue Projection
Managing Creativity Reality Show Operating Profit Projection
Mitigating Creativity Risks Alternative Strategies
Competitor Analysis
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
24. APPENDIX|RISKS & MITIGATIONS 2010
Risks for Recommendation 1: Expansion Mitigation
Large investment expenditure for venue Historical growth has shown that
construction does not receive due ROI even worst-case is still sufficient
Competing with established competitor Differentiate the show as exclusive
shows in target geographic location with premium ticket pricing
Cultural differences per geographic Tailor new show to the specific
location may hinder acceptance of a show regions culture
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
25. APPENDIX|RISKS & MITIGATIONS 2010
Risks for Recommendation 2: Night Club Mitigation
Inability to find a new locale for venue on Expand into an existing venue that
the Vegas strip by leasing
Cannibalism of existing MGM-owned clubs Look into revamping poor
and equivalents in its hotels performing clubs outside of MGM
Low attendance rate or insufficient brand Extensively use promotions,
awareness of new club development advertisements and discounts
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
26. APPENDIX|RISKS & MITIGATIONS 2010
Risks for Recommendation 3: Reality TV Mitigation
Low amount of viewers due either to Promote heavily with existing
unawareness or disinterest membership base
Lack of advertisement sponsors to Leverage existing partnerships and
generate sufficient revenue returns introduce new show to them
Reality TV and related industry is not our Hire outside directors as well as
expertise utilize past case studies
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
27. APPENDIX| PARTNERSHIP IMPLEMENTATION 2010
City Example of Partner Capacity Example Shows
Los Angeles Kodak Theater 3,401 “Hollywood“
Los Angeles Pantages Theater 2,703 “Hollywood“
Shanghai Grand Theater 1,800 “Asia“
New York City Broadway Theater 500 “Broadway“
New York City WaMu Theater 5,600 “In the City“
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
28. APPENDIX| MANAGING CREATIVITY 2010
Creativity is the Cornerstone of Cirque du Soleil
Guiding Quotes by Management How to Maintain Creative Edge
``Always put creativity first`` Rotate Stage Directors
Set strict partnership selection
``Maintain full creative control`` criteria
No outsourcing talent
``Show comes before business``
Spend 2-3 years planning shows
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
30. APPENDIX| WHY NOT EXPAND TOURING SHOWS 2010
``We deliberately chose a strategy of exclusivity``
We want to be a ``diamond``
Exclusivity
Core Value
Maintain prestigious image value
Demand High Prices and Margins
Maintain current number of tour shows (7)
How Maintain current tour locations and length
Arena over Big-Top
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
31. APPENDIX| WHY ARENA STYLE OVER BIG TOP STYLE 2010
Arenas are more efficient to set-up, less expensive to operate, and more modern
Arena Big Top
Show Length Full Week Less Than Week
Set-up Employees 96 people 200 people
Set-up Time 9 hours 9 days
Take-down Time 2 hours 2.5 days
Capacity 2,500 seats 8,000-12,000 seats
Source: Gateway
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
32. APPENDIX| CIRQUE DU SOLEIL`S VALUE-ADD FOR CASINOS 2010
Introduction of a Cirque du Soleil Show has benefited MGM Mirage`s other segments
Casino Show Seats Benefit
New York New York Zumanity 1,250 23% increase in Net Revenue
The Mirage Love 2,000 $25 mn growth in EBITDA impact in
following year
MGM Grand Ka 2,000 13% increase in slot revenues
Note: Show goers drop an average of $30 apiece on dinner or drinks
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
33. APPENDIX| TOP 10 GAMBLING GETAWAYS 2010
MSNBC Casino City Times
1. Aruba 1. Las Vegas
2. Atlantic City 2. Macau
3. Goa 3. Atlantic City
4. Las Vegas 4. Australia
5. Macau 5. Mississippi
6. Mississippi Gulf Coast 6. France
7. Monte Carlo 7. Los Angeles
Source: msnbc Source: Casino City Times
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
34. APPENDIX| WHY THE CIRQUE COMPLEX DID NOT WORK 2010
`Interactive museums, night clubs where customers dance in water and hotels that add
a surreality to five-star service`
Location Features Cost Reasons Failed Takeaway
London`s High-end retail 1 Bn Slowness of Choose
Battersea Restaurant Pounds + Developments partnerships
Power Entertainment Center carefully with
Station 2,000-seat Theater Lack of creative focus on vision
2 Hotels Control over Project and creative
Convention Center control
Montreal 100-room Hotel, Spa, C$100Mn Lack of investors Concentrate on
Restaurant what we are
Multi-use Theater Lack of expertise in good at
hotels and
restaurants business
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
36. APPENDIX|SHOW PROFIT MODEL 2010
Resident Show Touring Show
Fixed Cost
Big top $0 $13,000,000
Equipment $0 $7,000,000
Production $15,000,000 $30,000,000
Total $15,000,000 $50,000,000
Average ticket price $120 $150
Average Profit Margin 80% 80%
Total Operating Expenses/ Show $164,160 $240,000
Shows per week 10 9
Weeks per year 48 36
Shows per year 480 324
Available seats per show 1900 2500
Occupancy rate 90% 80%
Occupied seats per show 1710 2000
Occupied seats per year 820800 648000
Total Revenue (M) $98,496,000 $97,200,000
Revenue per show $205,200 $300,000
Profit per show $41,040 $60,000
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
37. APPENDIX|SHOW BREAK-EVEN ANALYSIS 2010
Resident Show Touring Show
Average ticket price $120 $150
Shows per year 480 324
Available seats per show 1900 2500
Profit per show $41,040.00 $ 60,000.00
Break-Even Statistics
Breakeven occupancy rate 60% 65%
Revenue at Break-even Occupancy $65,664,000 $78,975,000
Revenue per show to Break-even $136,800 $243,750
Shows to Break-even 365.5 833.3
Years to Break-even 0.76 years 2.57 years
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
38. APPENDIX|RESIDENT SHOW EXPANSION MODEL 2010
Year
0 1 2 3 4 5
Number of shows opened 0 1 0 0 0 0
Total Shows 0 1 1 1 1 1
Average ticket price $120 $120 $130 $130 $130 $130
Shows per year 480 480 480 480 480 480
Avg. Available seats per show 2000 2000 2000 2000 2000 2000
Occupancy rate 90% 90% 90% 93% 93% 95%
Occupied seats per show 1,800 1,800 1,800 1,860 1,860 1,900
Occupied seats per year 864,000 864,000 864,000 892,800 892,800 912,000
Revenue per new show $0 $103,680,000 $0 $0 $0 $0
Total Revenue $0 $103,680,000 $112,320,000 $116,064,000 $116,064,000 $118,560,000
Production costs per show $ 180,000,000 $ 180,000,000 $ 180,000,000 $ 180,000,000 $ 180,000,000 $ 180,000,000
Production Costs to MGM 91.7% 91.7% 91.7% 91.7% 91.7% 91.7%
Fixed Cost : Production Costs $15,000,012 $0 $0 $0 $0 $0
Variable Cost: Theater and Show Ops $0 $88,128,000 $88,128,000 $88,128,000 $88,128,000 $88,128,000
Total Cost $15,000,012 $88,128,000 $88,128,000 $88,128,000 $88,128,000 $88,128,000
Operating profit -$15,000,012 $15,552,000 $24,192,000 $27,936,000 $27,936,000 $30,432,000
Creative Royalty $13,478,400 $14,601,600 $15,088,320 $15,088,320 $15,412,800
Net Cash Flow -$15,000,012 $29,030,400 $38,793,600 $43,024,320 $43,024,320 $45,844,800
1-Year IRR 94%
5-Year IRR 216%
Break-even 0.52 Years
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
39. APPENDIX|SHOW PROFIT MODEL 2010
Resident Show Touring Show
Fixed Cost
Big top $0 $13,000,000
Equipment $0 $7,000,000
Production $15,000,000 $30,000,000
Total $15,000,000 $50,000,000
Average ticket price $120 $150
Average Profit Margin 80% 80%
Total Operating Expenses/ Show $164,160 $240,000
Shows per week 10 9
Weeks per year 48 36
Shows per year 480 324
Available seats per show 1900 2500
Occupancy rate 90% 80%
Occupied seats per show 1710 2000
Occupied seats per year 820800 648000
Total Revenue (M) $98,496,000 $97,200,000
Revenue per show $205,200 $300,000
Profit per show $41,040 $60,000
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
40. APPENDIX|NIGHTCLUB ROI (PART 1) 2010
2008 2009 2010 2011 2012 2013
Total clubs 1 1 1 1 1
Club capacity 2,000 2,000 2,000 2,000 2,000
Club occupancy rate 60% 60% 60% 60% 60%
Average club occupancy 1,200 1,200 1,200 1,200 1,200
Cirque attendees 1,800 1,800 1,860 1,860 1,900
% of Cirque attendees 35% 45% 55% 60% 60%
Cirque and club attendees 630 810 1,023 1,116 1,140
Outside attendees 570 390 177 84 60
Entrance price - Cirque attendees $40 $40 $45 $45 $50
Entrance price - Outside attendees $50 $50 $55 $55 $60
Consumption expenditure per person $40 $45 $50 $55 $60
Cirque attendee revenue $25,200 $32,400 $46,035 $50,220 $57,000
Outside attendee revenue $28,500 $19,500 $9,735 $4,620 $3,600
Consumption revenue $48,000 $54,000 $60,000 $66,000 $72,000
Number of Tables 50 50 50 50 50
Table Occupancy rate 50% 50% 50% 50% 50%
Table Reservations 25 25 25 25 25
Price per Table $3,000 $3,000 $3,000 $3,000 $3,000
Table Revenue $75,000 $75,000 $75,000 $75,000 $75,000
Total Ticket Revenue $53,700 $51,900 $55,770 $54,840 $60,600
Total Consumption Revenue $48,000 $54,000 $60,000 $66,000 $72,000
Nights open a year 234 234 234 234 234
Annual revenue per club $12,565,800 $12,144,600 $13,050,180 $12,832,560 $14,180,400
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
44. APPENDIX|REALITY SHOW REVENUE PROJECTION 2010
2008 2009 2010 2011 2012 2013
Revenue
Touring Shows
Average number of seats 2,000 2,000 2,000 2,000 2,000
Number of shows 6 7 6 6 6
Total number of seats 12,000 14,000 12,000 12,000 12,000
Total shows per year 324 324 324 324 324
Annual seats 3,888,000 4,536,000 3,888,000 3,888,000 3,888,000
Resident Shows
Average number of seats 1,710 1,710 1,710 1,710 1,710
Number of shows 7 8 8 8 8
Total number of seats 11,970 13,680 13,680 13,680 13,680
Total shows per year 480 480 480 480 480
Annual seats 5,745,600 6,566,400 6,566,400 6,566,400 6,566,400
Total number of seats 9,633,600 11,237,270 10,611,722 10,602,964 10,772,489
% increase in attendees 1.4% 1.4% 1.4% 3.0% 3.0%
Total increase in attendees 134870.4 157,322 148,564 318,089 323,175
Average price per ticket $100 $100 $100 $100 $100
Increase in attendee revenue $13,487,040 $15,732,179 $14,856,410 $31,808,892 $32,317,467
% of attendees who purchase DVDs 0% 20% 20% 20% 20%
Price per DVD 25 25 25 25 25
DVD Revenue $0 $56,186,352 $53,058,609 $53,014,821 $53,862,445
Total Revenue $13,487,040 $71,918,531 $67,915,019 $84,823,713 $86,179,911
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
45. APPENDIX|REALITY SHOW OPERATING PROFIT PROJECTION 2010
2008 2009 2010 2011 2012 2013
Total Revenue $13,487,040 $71,918,531 $67,915,019 $84,823,713 $86,179,911
Operating costs:
Average cost per episode $700,000 $700,000 $700,000 $700,000 $700,000
Number of episodes 10 10 10 10 10
Production costs $7,000,000 $7,000,000 $7,000,000 $7,000,000 $7,000,000
Winner's new contract 0 75,000 75,000 75,000 75,000
Total costs $7,000,000 $7,075,000 $7,075,000 $7,075,000 $7,075,000
Operating profit $6,487,040 $64,843,531 $60,840,019 $77,748,713 $79,104,911
Development Cost -$5,000,000
Net Cash Flow -$5,000,000 $6,487,040 $64,843,531 $60,840,019 $77,748,713 $79,104,911
1-Yr IRR 30%
2-Yr IRR 331%
Payback 0.77
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
46. APPENDIX| ALTERNATIVE STRATEGIES 2010
Alternative Strategy Pros Cons
Cruises -Targets high-end -Lower viewership per
sophisticated customers performance
-Global audience -Limited number of shows
-Infrastructure available for per week
general shows -Low ROI
Hotel Operation -Huge revenue potential -Lack of experience in this
-Potential venue for future business segment
shows -High fixed cost to operate
Interactive Museum - Engages cutting-edge -Low Revenue potential
technologies -Many competing museums,
lack of differentiation
High-End Dining - New market segment -Not our expertise
-Chain could overextend
brand
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
47. APPENDIX| COMPETITIVE POSITIONING 2010
Competitor Line of Business The Cirque Advantage
Dragone • Director from Cirque du Soleil •Larger scale
•Similar Productions •Partnerships with global
•Upcoming Project in Macau businesses
Feld Entertainment • Ringling Bros. • Different Target Demographic
•Disney on Ice of Adults vs. Families
•Disney Live •No repeats of shows
Dodger Properties •Major Broadway Productions •Huge creative team that
handles all aspects of creative
process
•Production of more creative,
interpretive shows
Source: Businessweek
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
48. APPENDIX| WHY ABU DHABI & ATLANTIC CITY 2010
Tourism Reviews
• The survey demonstrates that Atlantic City remains an attractive
destination for tourists
• 96% of visitors view Atlantic City as becoming more attractive.
• 99% would recommend Atlantic City to friends or family members.
• Eleven casinos where you also get to enjoy the pleasures of celebrity
chef restaurants, nightclubs in New York style and sprawling spas.
historic concert hall where musical bands like The Police, The Rolling
Stones and Madonna
• Casinos are great attractions with sparkling new retail, dining and
entertainment complexes like The Pier Shops at Caesars (where
Tiffany & Gucci boutiques hold court) and the Havana-inspired The
Quarter at Tropicana.
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
49. APPENDIX| WHY ABU DHABI & ATLANTIC CITY 2010
Annual Visit-Trips to Atlantic City (in thousands)
Franchise
Year Automobile Casino Bus Air Rail Total
Bus
2008 25,903 4,910 505 250 245 31,813
2007 26,929 5,408 501 260 202 33,300
2006 27,545 6,041 526 260 162 34,534
2005 27,889 6,104 519 261 151 34,924
2004 25,815 6,600 495 261 152 33,323
2003 24,553 6,764 504 261 142 32,223
2002 24,676 7,586 514 268 143 33,188
2001 23,501 7,985 519 276 139 32,420
2000 23,177 9,015 536 323 133 33,184
1999 23,247 9,342 539 396 128 33,652
1998 23,293 9,903 530 447 127 34,300
Source: South Jersey Transportation Authority
Situational Analysis | Executive Summary | Recommendations | Impact Analysis | Conclusion
Finally, Resident shows are where we already have strong partnerships built on trust.Focus on Resident Shows.
Finally, Resident shows are where we already have strong partnerships built on trust.Focus on Resident Shows.
Now that we know we would like to grow the resident segment, how do we pick our partnerships.Here are the criteria for selecting partners.Criteria:Is there a creative freedom or controlÉIs the partnership sustainableÉ3. Will the partner adhere to cirques social responsibility criteria4. Is there a good return
Now that we know we would like to grow the resident segment, how do we pick our partnerships.Here are the criteria for selecting partners.Criteria:Is there a creative freedom or controlÉIs the partnership sustainableÉ3. Will the partner adhere to cirques social responsibility criteria4. Is there a good return
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations
Cannibalization in VegasInexperience in other entertainment industries (by starting in a region we are comfortable in, we can grow our experience in other industries so investors in the future believe in our credibility in other industries)
How does this fit with Rec 1 (Transition)We need to tell a storyFind a locationYou go to a show
How does this fit with Rec 1 (Transition)We need to tell a storyFind a locationYou go to a show
How does this fit with Rec 1 (Transition)We need to tell a storyFind a locationYou go to a show
We don`t want to limit our growth onto gambling and casino destinationsLimiting overall growth potentialOther high tourism expenditure locations