2. ABOUT THE CASE STUDY Cover the resources, capabilities and
attributes requiredby F1 constructors. Analyses the reason for the
dominance of different constructors during different periods. It
will analyze the reason behind their inability to sustain their
dominance and also suggest ways by which these constructors could
have sustained their competitive advantage. Describes three
examples of the creation of competitive advantage in a highly
technological context of F1.
3. 19451950Started by Drivers FIA as world Formula A
Championship1960s1990sThird highest TV audienceTop FOUR TEAMS
Williams, McLaren, Ferrari, Benetton
4. SOURCES OF REVENUES Commercial Sponsorship from non related
companies(clothing, cigarettes)Support through provision of free
product andservices such as engines, fuel and lubricants (Renault,
Ford, Shell, ELF)
5. System support (Andersen Consulting, Bulls andSun
Microsystem) Auto motive manufactures (Honda, BMW,Toyota) Equity
holderPrize money
6. FERRARI
7. Founder-Enzo FerrariFerrari viewed as National Icon in
Italy1964-won world championship
8. They build their own engines, gearbox,suspension, chassis at
Maranello factory the most up-to-date facilities in terms of
designing, developing and building all the necessary
components.1969-merger between Fiat and Ferrari; hugecash
injectionEarly 1970s-Fiat influence meant increasepressure and
resources
9. 1971-opened their own test track at Fiorina nearMaranello
Factory.1972-73 cars were fast but not reliable1974-change of team
membersForghieri recalled as technical director New Team Boss-Luca
Montezomolo
10. 1974- Ferrari offered Niki Lauda to joinThey designed a new
car 312B but lost because of technical difficult. 1975-tables
turn312T won both Drivers and Constructors Championship 1976- Niki
Lauda met an accident but managed tograb constructors
championship
11. 1977-won both the championships Lauda left 1979- was the
last time they won the championshipfor next 21 years mid 80s-more
investment into facilities but no resultappeared
12. 1982-83 finally investment paid off as they wonconstructors
championship 1988-Enzo Ferrari died 1992-luco Montezomolo took over
as CEO2000- return of glory with Schumacher's victory
13. MCLAREN
14. Founded by New Zealand F1 Driver Bruce McLaren in1966 Had
their first major victory in Belgium Grand Prix of 1968 McLaren was
killed two years later while testing the American Sports Car Lawyer
& friend Teddy Mayer took over as team Principal & team
continued to develop In 1974, sponsorship from Philip Morris, for
Marlboro brand which lasted till 1996 In 1980, Ron Dennis became
joint team principal McLaren Have Taken Part In 440 Grand Prix
16. TIMELINE 1966 BIRTH19681974198019861987-88RON BARNARD FIRST
Prost 1ST OUT, MAJOR SPONSORSHIP DENNIS & Senna COMES WIN
(MARLBORO) MURRAY IN were INrecruited, HONDA CAME IN
17. GOLDEN PERIOD FOR MCLAREN 19881989 McLaren Won The
Championship From 1988-91 They Won 38 Out Of 48 Races Between these
years19901991
18. GOLDEN YEARS OF MCLAREN In 1988, McLaren won 15 out of 16
Grand PrixIn 1988, Dennis began a project on McLaren road-going
car- McLaren F1 was launched in 1994 and with a price tag of
634,000 and a top speed of 231 mph became the most expensive and
fastest road-going car in the world. The design skills of Gordon
Murray was mainly used in this car.
19. PILLARS OF MCLAREN John Barnard was considered to be the
reason forMcLarens developing dominance The partnership between
Dennis and Barnard had been stormy but they achieved many targets
Dennis providing the managerial and commercial acumens Barnard
highly innovative design skills RON DENNIS JOHN BARNARD
20. V/S PROSTSENNAProst & Senna were real contrasts Senna
was fast & had unparralel commitment to win races Prost was
fast too, but a great tactician, making sure the whole team was
behind him Sennas brilliance was undisputed at Japanese Grand Prix
when he pushed Prosts Ferrari off road to win the race Senna passed
away in 1994
21. SUCCESS OF MCLAREN McLaren was successful because Ron
Dennis hadnegotiated exclusive for Honda Motors Ron Denniss
negotiating & marketing abilities were remarkable throughout F1
Barnard once likened working with Dennis as 'being in a room with a
hand grenade rolling about without its pin, about to go off and
make a horrible mess.
22. McLarens Decline In 1992, McLarens slippage came Renault
engines in Williams started gaining pace In September, Honda made
it clear that they are backing out of F1because of achievements of
goals & finding new challenges Denniss lame reaction to this
setback made them move towards-Ford engines, which were easily
available Senna still managed to win some races but eventually
moved on toWilliams in 1993 Having tried Peugeot engines in 1991
then moved to Mercedes in1995 In 1996, relationship between McLaren
& Philip Morris came to anend, Philip Morris moving support to
their Marlboro brand to Ferrari driver Michael Schumacher1992
23. RISING FROM THE ASH In 1997, McLaren acquired the services
of Williamsdesigner Adrian Newey for a reputed 2 million contract.
He designed talents coupled with a more powerful and reliable
Mercedes engine meant that McLaren again became the team to
beat
24. WILLIAMS
25. 1968 FRANK WILLIAMS(RACING CARS) ESTAB.1977 WILLIAMS GRAND
PRIX ENGG. ESTAB.1980-81 ALAN JONES DRIVERS TITLE WON CONSTRUCTORS
CHAMPIONSHIP1986 FRANK WILLIAMS ACCIDENT1987 HONDA MADE ENGINES
AVAILABLE TO LOTUS
26. 1988 HONDA MADE ENGINES AVAILABLE TO McLaren NIGEL MANSELL
JOINED FERRARI1990 TIED UP WITH RENAULT1991 NIGEL MANSELL
RETURNED1992 NIGEL MANSELL WON F1 CONSTRUCTORS HE LEFT AT
YEAR-END1993 ALAIN PROST WON F1 CHAMPIONSHIP
27. STRATEGY OF WILLIAMS More functional than innovativeLOTUS
Ground Effect and ActiveSuspension McLaren Carbon Composite
monoceque FERRARI Semi-automatic Gearbox
28. HOW DOES THE RESOURCE BASED VIEW APPLY TO WINNING FORMULA
ONE CHAMPIONSHIP???
29. FERRARI AND ITS RENAISSANCE IN THE MID 1970S Availability
of technical expertise andresourcesCash flow from Fiat and Ferrari
Merger
30. Management style of Team Driver NikiLauda, Designer Mauro
Forghieri and manager Luca MontezemoloOwn test track a few yards
away from thefactory
31. MCLAREN Put together best of everything Secured exclusive
use of HondaSponsorship from Philip Morris
32. Secured the services of the best driver around (Sennaand
Prost) Commercial and leadership skills of Ron DennisRon Dennis and
John Barnard partnership stormy butuseful
33. WILLIAMS Focus on engineering FW06 Patrick Head with Saudi
Airlines helpedwinning constructorsCar development process was top
prioritysupported by team of designers
34. Development of powerful and reliable engineperfectly
complemented by chassis Long standing partnership of Frank Williams
andPatrick HeadWide ranging relationship with engine
supplierRenault
35. WHAT CORE COMPETENCIES WERE KEY TO EACH OF THE MAIN
WINNERS???
36. CORE COMPETENCY: The main strengths or strategic advantages
of a business. Pooled Knowledge + Technical Capacities =
Competitiveness It has to fulfill three key criteria's : It is not
easy for competitors to imitate. It can be reused widely for many
products and markets. It must contribute to the end consumer's
experienced benefitsand the value of the product/service to its
customers.
37. MCLAREN Partnership with Philip Morris and appointment of
RonDennis Innovative skills of John Barnard Collaboration with
Honda Signing of Prost and Senna
38. FERRARI Maranello Factory Identity Takeover By Fiat The
Trinity of Mauro Forghieri + LucaMontezemolo + Niki Lauda 312T
39. WILLIAMS Collaboration with Renault RS3 V10 and FW15
chassis PATRICK HEADS innovation namely semi-automaticgear box,
drive by wire and active suspension system Exploiting the
technology available Combination of ten things which gave them a
couple of seconds of advantage
40. TO WHAT EXTENT DID THE KEY COMPETENCIES VARY OVER TIME IN
THE FORMULA 1 CHAMPIONSHIP???
41. FERRARI The renaissance of Ferrari in mid 1970sTheir unique
approach- creating everything oftheir own- gearboxes, engines,
suspensions, chassis- made in their home town Maranello
factory
42. They also were very rich in the technicalexpertise and
recourses They returned to stage 1999-2003: Workedtogether -driver
Niki Lauda, designer Mauro Forghieri and team manager Luca
Montezemolo
43. Later in 1999-2003, Ferrari was back to their stageand
glory and they were working with Michael Schumacher, a key element,
and also their focus was support team which was a very efficient
one.
44. MCLAREN McLaren and Honda domination in the late
1980sMcLaren were successful because they were able to puttogether
the best of everything. They secured exclusive use of the Honda
engine at a time when it was the most powerful and reliable- Honda
engines won for 6 consecutive years- one for Williams and 4 for
McLaren
45. They were also able to secure the services of thebest
drivers around (Senna and Prost). This was due to the high level of
funds madeavailable by sponsor Philip Morris, Marlboro.
46. WILLIAMS Williams and the technological revolution: the
mid1990sWilliams success was due to their engineering focus. Frank
Williams was very dedicated to his passion andbought many new
changes in the team.
47. This engineering focus can be attributed to
thelong-standing partnership of Frank Williams and Patrick Head.
Collaboration with Renault RS3 V10 and FW15 chassis
48. THE VARYING FACTOR IN THEIR COMPETENCIES ARE 9 9 8 7 6 5 4
3 2 1 09 7797 6FERRARIMCLAREN CARDRIVERS66WILLIAMS SUPPORTING
TEAM
