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Created in 1984 by a group of Canadian street performers, Cirque du Soleil's themed acrobatic ballets have been seen by 50 million customers; and in 20 years, the company has achieved revenues that the major circuses-Ringling Brothers and Barnum & Bailey-took 100 years to achieve. In a dying industry, undercut by TV and video game home entertainment, Cirque du Soleil created a completely new category of "circus" entertainment, a whole new product differentiation, a whole new market space. 1 No more expensive animals (and animal rights objections). As explained in Module 1, markets continuously evolve as new innovations are commercialized. Think mutual funds, minivans, cell phones. Question What is it about Cirque du Soleil that has enabled it to continue to be so profitable and over 20 years grow its revenues and profitability compared with the companies that first commercialized the mutual fund, minivan, and cell phone?
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