Bernie Ecclestone's Formula for Formula One

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VIRÁG SZOMORA EXAM NR.: 319595 2013 JANUARY MANAGEMENT OF TECHNOLOGY ASSIGNMENT #3 BERNIE ECCLESTONE’S FORMULA FOR FORMULA ONE UNIVERSITY OF SOUTHERN DENMARK 2013 JANUARY 1 VIRÁG SZOMORA EXAM NR.: 319595 2013 JANUARY „They say Formula One is a market which it can’t be, obviously. Our market is independent, it’s a sport.” (Bernie Ecclestone) Formula One is one of the biggest businesses in the world since the 1980s. The motor racing sport itself is more than a century old, and through these years it carried out, survived and fought lot of changes, innovation and development. Since the first Grand Prix in 1906 in Le Mans (won by the Hungarian-born Ferenc Szisz with Renault) almost everything around the sport was…show more content…
Local promoters negotiated the terms of each team’s participation individually, which often led to disagreements and teams’ refusal from participation. This sense of uncertainty led to reluctance from both the corporate sponsors and TV broadcasters to commit money and programming time to F1 events. The situation needed overarching agreements linking these players that make up the F1 world. Before After +/+ - Teams Promoters Logistics Media Corporate sponsors Automakers • full season commitment • more consistency • five-year track contracts • centralization • no uncertainty • high viewership • access to the unique marketing opportunities • enhance brand • opportunity to develop and test + ++ + +++ ++ ++ +/+/+ This diagram shows Bernie Ecclestone treated the members of the adoption chain, what steps he committed and what opportunities he offered so everyone could find its benefits of participation in Formula One. 4 VIRÁG SZOMORA EXAM NR.: 319595 2013 JANUARY 4. Value blueprint – Mapping the ecosystem As I have already introduced the members and links in the Formula One ecosystem and showed how the co-innovation and adoption chain risks were solved, I can now map the ecosystem and create the blueprint. Automakers Teams Corporate sponsors Other suppliers Promoters Motor racing Logistics Race promoters Show Viewers Fans Rules and authority Media This is the

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