F1 Strategic Capabilities

LSMF 2015 Management Strategique de la Technologie et de lInnovation Seance 4 1 LSMF 2015 Plan de la seance F1 What its all most Strategic Capabilities Case Study finishing What do you fill in order to succeed in F1? Sustainable Competitive Advantage Why where they unable to keep their advantages? Conclusion et Discussion 2 LSMF 2015 1 F1 What its all about tarradiddle 4 key moments 1945 FIA established Formula A as the premier level of motorsport 1950 A drivers World Championship was introduced 1958 A constructors World Championship was introduced 1960 From a car test concept to a specialized business write up Big Names Juan Manuel Fangio (Champion in 1951-1954-1955-1956-1957) Nicky Lauda (Champion in 1975-1977-1984) Alain Prost (Champion in 1985-1986-1989-1993) Ayrton Senna (Champion in 1988-1990-1991) Michael Schumacher (Champion in 1994-1995-2000-2001-2002-2003-2004) 3 Next king-sized champion?LSMF 2015 F1 What its all about History Last 10 world champions 2000 2004 Michael Schumacher (Ferrari) 2005 2006 Fernando Alonso (Renault) 2007 Kimi Raikonen (Ferrari) 2008 Lewis Hamilton (McLaren/Mercedes) 2009 Jenson Button (Brawn/Mercedes) History Belgian in Formula 1 22 belgian drivers were at least once at the start of a F1 Grand Prix Thierry Boutsen 1983-1993 (wins 3 races) Jacky Ickx 1967-1979 (wins 8 races) Next? Jerome dAmbrosio Reserve Driver for Renault F1 in 2010 Bertrand Baguette IndyCar Series for 2010 LSMF 2015 2 F1 What its all about F1 season from March to November 24 drivers in 12 teams will run 19 races 2 Championships (Driver and Constructor) New rules every year (e. g. Points Awarded System in 2010) Sources of Revenue Sponsorship and Prize money FOA (Formule One Administration) role consists in dividing up the royalties from media coverage and other revenues Motorsport valley in Oxford, UK. 5 LSMF 2015 F1 What its all about 6 LSMF 2015 3 F1 ApplicationWhat do you need in order to succeed in F1? In terms of resource s and competences 7 LSMF 2015 F1 Application Why do you think your team was successful during this period? 1. 2. 3. 4. Ferrari in the 1970s McLaren and Honda in the 1980s Williams in the 1990s Ferrari between 1999 and 2003 LSMF 2015 8 4 F1 Application Which of these resources and competences can be considered as a source of sustainable competitive advantage? 9 LSMF 2015 Capabilities for Sustainable Competitive AdvantageWe usually use 4 factors to severalise which capabilities might provide a competitive advantage 1. 2. 3. Value Rarity Create values for the customers argon rare Inimitable Through complexity, culture and history, and causal ambiguity (= difficulty to discern the causes and the effects underpinning an plaque advantage) Non-substituability cfr. Substitutes in the 5 forces analysis 4. 10 LSMF 2015 5 F1 Application The answer is None 11 LSMF 2015 F1 Application Why were they unable to sustain this success? What could they have done? 12 LSMF 2015 6