The F1 Constructor Case Study: The Return of Ferrari
The F1 Constructor Case Study
The 4th period : the return of Ferrari
Anayse of the value chain of the dominant player
Primary activities:
OPERATIONS:
1986: Creation of a design and development facility near Guildford in Surrey which was developed into Guildford technical office (GTO) which made Ferrari be able to imitate the British constructors. Competitive advantage: anticipation and vision on a long term basis: GTO would concentrate on the design of the following year’s car
1996 Task to build up a new design department in Maranello of around 50 people because of the GTO’s closing (due to Barnard’s leaving).
Support activity:
Human Resource Management:
1986: John Barnard, Englishman at the top technical direction, very involved with the CTO’s creation
1996: recruitment of Michael Schumacher (double word champion) and two other individuals from the Benetton team: Rory Byrne for the design of the cars and Ross Brawn: who manages the entire technical operation
Schumacher’s talent as a driver and motivator of the team
Firm infrastructure: 1988: major change and evolution of Ferrari’s direction: with Enzo Ferrari’s death, Fiat holds 90% of the stakes.
1992: Luca di Montezemolo as CEO, experience in the Ferrari team (1970), ambitious, willingness for change and improvement
New overall management! But problems by separating design and development in Guildford and racing operations in Maranello.
Technological development
Task: try to create a real competitive advantage with the fact that Ferrari is making its own engine, by integrating the design of the engine, the chassis and aerodynamics as early in the process as possible.
Marketing and sales
Long term partnership with Shell, both financial and technical support to the team
Realization and focus on long term commercial and technological arrangements, with coordinated marketing strategies for commercial partners to maximize the benefits of their investments
1999 Ferrari
The 4th period : the return of Ferrari
Anayse of the value chain of the dominant player
Primary activities:
OPERATIONS:
1986: Creation of a design and development facility near Guildford in Surrey which was developed into Guildford technical office (GTO) which made Ferrari be able to imitate the British constructors. Competitive advantage: anticipation and vision on a long term basis: GTO would concentrate on the design of the following year’s car
1996 Task to build up a new design department in Maranello of around 50 people because of the GTO’s closing (due to Barnard’s leaving).
Support activity:
Human Resource Management:
1986: John Barnard, Englishman at the top technical direction, very involved with the CTO’s creation
1996: recruitment of Michael Schumacher (double word champion) and two other individuals from the Benetton team: Rory Byrne for the design of the cars and Ross Brawn: who manages the entire technical operation
Schumacher’s talent as a driver and motivator of the team
Firm infrastructure: 1988: major change and evolution of Ferrari’s direction: with Enzo Ferrari’s death, Fiat holds 90% of the stakes.
1992: Luca di Montezemolo as CEO, experience in the Ferrari team (1970), ambitious, willingness for change and improvement
New overall management! But problems by separating design and development in Guildford and racing operations in Maranello.
Technological development
Task: try to create a real competitive advantage with the fact that Ferrari is making its own engine, by integrating the design of the engine, the chassis and aerodynamics as early in the process as possible.
Marketing and sales
Long term partnership with Shell, both financial and technical support to the team
Realization and focus on long term commercial and technological arrangements, with coordinated marketing strategies for commercial partners to maximize the benefits of their investments
1999 Ferrari