The Formula One constructors generally function at the peak of resource utilization and, therefore, manage resources very efficiently. Hence, almost every resource that becomes a capability for competitive advantage is converted into a competency for competitive advantage.
Internal strategic capability allows for successful strategy and is required for survival and success (Johnson et al, 1998). To gain competitive advantage involves adjustment of capabilities, for example acquiring major improvements and advancements in attributes such as technology and from the creation of new opportunities.
Stretching and exploiting capabilities in such a way that competitors cannot imitate, results in them becoming a rarity and providing competitive advantage. The factors responsible for the success of the teams in their respective periods of dominance can be considered through analysis of the organizations core competencies, a form of competitive advantage which is usually a result of collective learning processes and are manifested in business and activities and processes.
[...] The return of glory: 1999-2004 Since Ferrari's success in the mid 1970's, much change led to a move towards revamping the management, technical department and design development. Appointing British technical director John Barnard led to a change in attitude of the organization as they were now prepared to imitate the British constructors with a base in Britain. Luca Di Montezemolo, team manager of Ferrari during their dominance in the mid 1970's, returned as CEO in 1993 to restore Ferrari's dominance. Jean Todt was appointed to handle the overall management of the team. [...]
[...] Intellectual Capital Although patents are not allowed in Formula One, other intellectual capital includes the constructors' brand and reputation (largely used to gain finances). A key brand in Formula One is like the Maranello Red used by Ferrari. Complex business systems are required by Formula One teams for managing the large amount of data that flows in the organization. These resources will not reach their potential purely from existence. The way in which they are managed, used or deployed is essential in understanding strategic capability. [...]
[...] The factors responsible for the success of the teams in their respective periods of dominance can be considered through analysis of the organizations core competencies, a form of competitive advantage which is usually a result of “collective learning processes” and are manifested in business and activities and processes. Porter five forces analysis Threat of New Entrants: A new entrant to the Formula one industry faces many barriers. • High start up cost. • Excessive running cost. • High level of resources required, also act as a barrier for potential new entrants to the industry. [...]
[...] Change to Adapt In 1980, new innovations in the aerodynamics brought the ‘ground effect' revolution. This was developed by Lotus and quickly adopted by Williams and Brabham, but Ferrari was not able to adopt this new technology, as their engine design was different. Cohesive configurations When the ‘ground effect' technology was developed, Ferrari knew that their cars would not be competent enough to keep up. Instead of finding a way of incorporating the new technology in their current cars, they chose to concentrate on a longer-term project of developing a V6 turbocharged engine. [...]
[...] • Engineers. • Drivers. • Management. • Sponsorships. • Designers. • Technology. Bargaining Power of Suppliers: The primary suppliers of Formula One constructors have a lot of power. So much so that in a few instances, suppliers have been the cause of the end of the period of dominance of some constructors. • Drivers. • Engine manufacturers. [...]
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