Situational Analysis for Formula One ‘F1’ SWOT Analysis Strengths Formula One is the leading brand in the single seater auto racing category which allows the drivers to reach the speed limit of 350 km per hour. It even has a pool of talented drivers and prominent brands of the automobile as part of its championship. Additionally, it has an excellent and competing merchandising structure which provides it excellence in the racing industry. In order to create an appropriate brand image, it has developed and implemented an integrated and well-synchronised marketing plan which provides it support in creating awareness about upcoming events. Even the brand has global presence as it has fan following on an international level.
More than 550 million people watch the event so it has proper TV coverage (Formula One, 3). Moreover, the tracks are created with superior quality materials so that the participants can drive smoothly and competitively. As it has an adequate range of internal sources, the consideration of organising the event in Denver will enhance the brand image. Furthermore, it will be able to penetrate deeply in the US market where NASCAR is the dominant player in the racing industry (Vertuno, 4). Weaknesses Since there are various costs associated with the races, the participants have to be cautious about their expenditure budgets.
Due to high expense amounts, various teams have withdrawn from the game. Moreover, there have been some conflicts going on between FIA and FOTA which are the two major regulatory bodies responsible for the racing championships (Vertuno, 11). In such events, the final result is mainly dependent on the quality of cars rather than on the competence of the drivers.
Therefore, the constructors have to give undue attention to the manufacturing of the desired product and quality aspect has to meet the international standards so that the lives of the drivers are safe and secured. In US, Formula One racing has minimal popularity as the citizens prefer to watch motorsports of NASCAR. NASCAR is mostly aired on the major stations of the country so it gives Formula One a tough challenge for getting the slots for running its event (Vertuno, 15). The major drawback for the brand is that there is a single race run in US and other races are organised in Spain, France, Canada and Italy.
Thus, convincing the people of US to attend the event will require immense effort by the brand. Opportunities As Formula One has attained top ranking in European Countries, it has to exploit the avenues present in other countries. For instance, the brand can consider the options of exploring unique territories like South Africa and Russia which lags behind in such motorsport races. Both of these regions have an accelerating population and people are keen to get involved in such adventurous and thrilling activities.
By organising the occasion in this region, there is a possibility that it can create a brand loyalty. Moreover, due to increasing concerns for environmental protection, the automobile manufactures can look for alternative measures like bio fuelled engines so that they are eco-friendly. Also, Formula One should try to attract a large target market on virtual platforms like social networking sites, creating discussion forums to get feedback from the audience and arranging CSR activities. With the help of such initiatives, it will be able to generate huge customer traffic and even create positive brand reputation. Threats For Formula One, the biggest threat is that the top ranked teams can break out from the association and create their own league.
Also, the leading and famous drivers can join other types of racing to enhance their presence and exploit the avenues for their career growth. Simultaneously, there is immense threat from MotoGP and NASCAR who are undertaking a range of differentiated activities for attracting and retaining their audience and even attract new people.
Other threats are in the form of stricter regulations either from the government or concerned authorities. Competitor Analysis The two major competitors for Formula One are NASCAR and MotoGP as they are among the top ranked racing events held by the organisers. As Formula One is looking forward to arrange the event in US where NASCAR is the leader, it will have to undertake a range of efforts for attaining the desired target of audience. Till now, the brand has been unable to attain the targets which it has set for attracting Americans but this opportunity of holding it in Denver will allow it to enhance the brand presence in the region. MotoGP is recognised as the premier style of motorcycle racing World Championship which incorporates a series of eighteen races which have taken place in about thirteen countries located in four continents.
It has been successful in achieving a wide and extraordinary coverage on television globally. In the event, there are highly skilled and proficient riders belonging to ten different nationalities. All of these professionals have motorcycles manufactured with the cutting-edge technology, prototype machinery and superior quality features.
The backbone of such an excellent range of motorcycles are Honda, Ducati and Yamaha (MotoGP, 2). National Association for Stock Car Auto Racing Inc. (NASCAR) is basically the sanctioning authority for the North America’s sports of premier level. All of NASCAR races are broadcasted in 150 countries and above even in twenty varying languages. It is believed that all of the brand’s fans are extremely loyal and getting them diverted to other brand is a challenging task. It comprises of three series organised on national level i. e.
NASCAR Nationwide Series, NASCAR Camping World Truck Series and NASCAR Sprint Cup Series; four series of regional level along with one on local level coupled with three series of international level (NASCAR, 16). Overall, it can be said that Formula One has an intense competition especially when it is organising the event in Denver. In order to get the attention of the target market, it will have to make sure that it utilises all appropriate marketing mediums. The most noteworthy aspect which needs to be addressed at this point is the exploitation of social media so that it can enhance its presence globally and is able to persuade the teenagers to attend and watch the race. Works Cited Formula One.
“The F1 brand – a powerful symbol of excellence. ” Formula1.com. Formula One World Championship Ltd. , 2014. Web. 14 April 2014. MotoGP. “MotoGP Basics. ” Motogp. com. Dorna Sports, 2013. Web. 14 April 2014. NASCAR. “About NASCAR. ” nascar. com. NASCAR, 20 December 2013. Web. 14 April 2014. Vertuno, Jim. “Formula One is back in the US, can it last? ” denverpost. com. The Denver Post, 14 November 2012.
Web. 14 April 2014.