Quote Ron Dennis..
“The process we are going through at the moment is with regard to how we can be bigger, stronger, to build the organization to match the resources some of the other players have because it’s not easy to race against Mercedes or Ferrari.”
McLaren Automotive may help that, but can such a business produce a consistent and sufficient revenue stream for McLaren Racing? I doubt it. The other McLaren businesses I'm sure are successful and make a tidy profit, but clearly combined it isn't enough when pondering another Ron Dennis quote...
"The [F1] business model is not attractive in the long term"
... because the economic golden era for Formula 1 is probably over, and revenues are going to decline, either steadily, rapidly, or at times both.
According to Ron ..."The way to avoid it is you build a broader base that supports a Formula 1 team, which is an important part of the business,”
And it is important because..."Our renewed partnership demonstrates a well-founded belief in the team’s ability to successfully activate brands around a shared, common vision for the future."
I assume that is through Formula 1 racing, via it's huge fan base, and how the sports reputation regarding technological progress, ability to rapidly adapt under pressure, and operations management is well thought of.
So what can McLaren do that is representative of it's "innovative high-technology", that puts them in a performance measured setting where McLaren can "win" something, AND double Group's revenues over the next 10-years? Ron has a penchant for finding large minority stakeholders to help fund his ventures.
Do you think they will make their own 'smart' watches? McLaren Human Performance Data Combobulators. What does Ron have up his sleeve?
Edited by Nathan, 10 December 2015 - 15:20.
