Essays on Generic Competitive Strategies of McLaren, Williams, Ferrari and Red Bull Case Study

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The paper 'Generic Competitive Strategies of McLaren, Williams, Ferrari and Red Bull" is a good example of a management case study. The dominance witnessed by McLaren where they won 15 out the entire 16 race championship was due to proper strategic planning. With a leader with good managing and negotiating skills, McLaren gained a competitive advantage by signing deals with superb engine producers.   Company Cost Leadership Differentiation Focus McLaren Unlike other racing teams, McLaren began as racing car developer with no involvement in the generation of road cars. McLaren worked with innovators who were able to use cheap material and produce the highly competitive McLaren.

Since most of the money came from the circuit races, McLaren was able to partner with Honda who was producing Powerful engines and reliable drivers such as Senna to win the consecutive championship that gave them a lot of money for development and expansion. McLaren used unique technology in the development of the MP4, a feature that kept them ahead of the competition. They were able to use powerful engines supplied by Honda and the use of well-experienced drivers. McLaren focus was on racing cars which they developed powerful cars enough to win a championship and attract more sponsorships.

The management of Ron Dennis enabled McLaren to develop and based on his marketing and negotiating skills that open up room for small teams to find sponsors. Williams Founded by Frank Williams the team was managed through unorthodox style with almost being declared bankrupt. Cost leadership was achieved through sponsorships from Saudi Airlines thereby enabling them to develop superb cars. The approach to driver selection was to always use affordable drivers while using high-performance F1 cars. Frank Williams was able to develop on ideas that were introduced by other racing teams and build on them.

Their uniqueness made them win the constructor's team award three times consecutively. The focus of the team was on the development of high-performance cars using unique technology basically designed by Williams himself. The uniqueness meant that they were developing advantages by seconds compared to their counterparts. The focus of the team was also to develop high-performance engines. Ferrari Once a legendary icon in the series, Ferrari was struggling in the 1980s. Ferrari manufactures their own engines, a strategy that took them to glory.

They were able to make powerful engines using their own affordable resources. This however led to their struggle because they were not good at manufacturing other parts such as the suspension and had only won a few races. Ferrari used their own manufactured engines. Other competitors in the series suffered because they were not able to develop their own engines. The powerful engines and the use of new technicians in the field led to the development of new technologically enhanced and developed cars. The talent of Schumacher as their driver gave them a competitive edge Ferrari’ s focus was to centralize all their activities in Italy for easy inspection and cost-effectiveness of the entire production process. Red Bull Red bull drinks owner indulged in F1 the time multiple numbers of people were watching formula 1 and saw it as an opportunity to make money.

With the acquisition of the Jaguar racing team, Red Bull team was developed in 2004. Most of the costs used to acquire the team came from the larger franchise that was selling drinks. The team preferred using young drivers until things got out a hand and the pressing need to win competitions.

The development of a wonderful hospitality center at their first competition defined their style and changed the face of Formula one competition. The aim of the team was to develop a strong car to win the championship which they did with Sebastian Vettel as their driver. The acquisition of McLaren’ s chief engineer indicated that they dedicated to constructing a powerful car that could win the constructor’ s trophy. They have won it three times in a row apart from Ferrari, McLaren and Williams. Comparative industry structure analysis McLaren The partnership with Honda who produced powerful engines at the time meant that McLaren remained ahead of the competition.

The diversification into producing road vehicles was well-timed when they produced the fastest road car and sold it for expensive prices. Despite the price tag, the McLaren F1 car was still marketable due to its uniqueness as the fastest road car. Their lack of preparedness of finding another engine manufacturer as Honda cost them their leadership strength thereby failing to maintain their leadership position.

However, the acquisition of the top formula 1 drivers indicated that the team was willing to pay better to win the championship (Jenkins 583-5). Williams With a financial dwindles throughout its period and the accident of its owner, the company was almost declared bankrupt. However, due to the persistence of its owner in producing technologically enhanced components enabled them to remain competitive in the championship and the acquisition of the top constructor’ s award. Williams worked with junior engineers who were effective in designing and building on the ideas that other companies had failed in.

The acquisition of top drivers such as Senna meant that Williams was paying its staff well and had quality cars to attract strong around their company. The approach by Williams was to invest more in the car than in the driver as was the tactic famously used by other teams such as McLaren. The tactic of building a stronger car paid off by winning the championship midway the season (Jenkins 585-7). Ferrari After the death of the owner, the shares of Fiat in Ferrari doubled.

The politics of management led to the departure some chief engineers such as Bernard who was located in England to help the company solve its aerodynamic problems. With superb engine dynamics, Ferrari was already ahead of the competition who mostly struggled after a few years to locate suitable engine manufacturers. The recruitment of Schumacher by Ferrari was a game-changer for them. The relocation of the England facility to Italy maintained good workflow. Shell’ s financial support helped Ferrari regain its glory. The long term technological and commercial deals signed by Ferrari enabled them to generate enough capital for them to stay in the competition.

The team was also willing to pay good incentives enabled them to work with the best staff to produce both superb road cars and championship cars (Jenkins 587-8).

Works Cited

Jenkins, Mark. “The Formula 1 Constructors: capabilities for success.” PDF File
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