Formula 1 Constructor - Choose a Team - Ferrari

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The resources, capabilities and attributes that are required for the success in Formula One (F1) can be looked on a number of dimensions taking into consideration the unique and fast paced context of Formula One. F1 is a highly competitive industry and based in a rapidly changing environment, which has been defined by Porter’s five forces (Appendix One). Key resources within F1 are both tangible and intangible and can be considered under the following broad categories: Physical Resources: The car and its components such as engines and chassis are vital resources but the technological advancement determines its ability to win races. Test Tracks are also vital physical resources both in the competitive context and in the ability to test…show more content…
Though such advantageous technological strategic capabilities have been required by constructors for competitive advantage, they have also become been a pivotal factor for the introduction of increased legislation designed to reduce uncertainty and increase competition, such as the introduction of generic tyres. The factors responsible for the success of the teams in their respective periods of dominance can be considered through analysis of the organisations 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 core competencies are those unique capabilities, which usually span over multiple products or markets.” (Hafeez 2002). Ferrari’s dominance in the mid 1970’s Much of Ferrari’s success during the period of the mid-1970’s can be attributed to the ability to build their race cars at the Maranello site without the need to outsource for component parts. This created centralisation of knowledge and expertise, thus the ability to transfer knowledge between departments without leakage. When Ferrari sold 40% of the company to Fiat, in 1969, providing huge cash injection thus acquiring the Fiorano test track allowing them to test the change in any aspect of the car on the track and observe real time results. This

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