Success in Formula 1
Considering the uniqueness and the fast pace of the sport, capabilities, resources and attributes that are required for gaining success in F1 can initiate through a number of dimensions. Motor sport industry is highly competitive and stands in a rapidly changing environment. For F1 industry the RBV seems to be a much more important factor as compared to MBV. The start up and running costs require huge financial resources. As a basis of being competitive, any medium sized constructor will have to invest up to 50-60 Million USD. In almost all the cases the majority of the team finance is raised via sponsorship. Most of the smaller teams depend a lot on the sponsorships to ...view middle of the document...
Technological development is one of the key factors to gain a competitive advantage in the racing industry. It is important for the team to have a superior car and engine combination. In addition, technology development includes steps to improve the car in areas like power and stability. It also includes steps like product design, servicing procedures and research.
Human resource management includes activities like training, recruitment and development of employees and therefore a key to gain a competitive advantage. In F1 this mean choosing the right engineer, designer, drivers and ofcourse the team manager, who are not only highly skilled in their area of expertise but also team player. This involves training and promoting the staff to keep them motivated and satisfied.
Infrastructure is another key area and an important source of competitive advantage. General management, finance, planning and accounting are crucial to achieve success even in the racing industry. External and internal linkages can also achieve a competitive advantage. External linkages include cooperation and coordination with component suppliers and sponsors whereas internal linkages include coordination between departments for example design team, technical team, racing team.
Firm’s capabilities are directly related to the resources they have. Capabilities are created by integration of many key resources and attributes. Competitive advantage involves adjustments of capabilities, for example acquiring major improvements and advancements in attributes such as technology and from the creation of new chances. F1 teams need engine manufacturing, car design and technological capabilities.
Success of Teams
Ferrari and its renaissance in mid 1970s
By using SWOT analysis we can identify that one of the main strengths of Ferrari was the use of component knowledge (technical and design skills related to engine, chassis and gearbox) as a source of competitive advantage. In1975, Ferrari’s 12-cylinder engine and 312T car, which had a wide low body and revolutionary transverse gearbox, was a result of this. These improved the balance and handling of the car. The car’s chassis, engine and gearbox combination was unmatched by any other team.
The other reason of Ferrari’s success was the use of architectural knowledge, which refers to the whole system and interaction between component knowledge of its various parts. It is difficult to transfer architectural knowledge to other competitors as it is distinct for each organization and develops over time.
In addition Montezemolo ensured that that each of the departments within Ferrari must concentrate on a specific task such as chassis, gearbox, engine and suspension. This helped avoid conflicts and helped assembling a great car.
Human resource was another factor of Ferrari’s success, as Montezemolo recruited the correct driver Nikki Lauda, who could communicate and build relation with the technical team. In addition...