Formula One has unveiled its first ever corporate strategy in order to ‘unleash the greatest racing spectacle on the planet.’
The strategy aims to inspire and excite fans whilst engaging new audiences across the world, and deliver increasing returns for stake holders.
The plan contains six strategic priorities which are;
- Race – Increase competitiveness and unpredictability on track.
- Engage – Produce world-class spectacles for fans on and off track.
- Perform – Drive value for stakeholders.
- Sustain – Deliver sustainable and efficient operations.
- Collaborate – Create win-win relationships with our partners
- Empower – Build an engaged, high-performing workforce.
F1 CEO – Chase Carey described the strategy as one that he hopes will ‘deliver more excitement and unpredictability on track and a healthier organisation off-track.’
What is Involved in Each Strategic Point?
Within each of the six strategic points, there is a full breakdown of what is involved within each point which you can find a summary of below.
Race – Liberty Media and FIA will work together on various specifications with the aim of closing the grid up, whilst doing so in a financial framework which makes F1 an attractive business with equal retribution of revenue and better performance rewards.
Liberty Media also wants to identify new ‘exciting’ formats which engages broader audiences and streamline the governance of F1, as well as helping improve the designs and upgrades of circuits.
Engage – Liberty Media want standalone spectacle events whilst expanding the Esport championship to reach the next generation of F1 fans.
Improving viewing experience across all platforms is a priority through producing original and engaging content across social media and digital platforms to increase fan engagement on top of marketing campaigns to ignite passion through ‘influencer partnerships.’
Performance – Drive sustainable growth with F1 broadcasters and improve their F1TV to serve hardcore fans, whilst creating a ‘geographically diverse race calendar’ with increased activities during race week.
They also intend to drive Paddock Club ticket sales by enhancing their in-house Sales and Marketing resources.
Sustain – Ensure F1 is net zero carbon by 2030 whilst developing logistical operations to move resources around the globe with minimal environmental impact, although there could be a reduction in employers and equipment sent to races as a result.
Liberty Media are also aiming to create 5G technology and a cloud based sport broadcasting platform which will contain multiple feeds.
Collaborate – Work closer with race promoters to generate new commercial opportunities and drive ticket sales, and produce co-creations with sponsors and broadcasters whilst strengthening relationships with FIA, teams and fans.
In terms of Engineering, Liberty Media aims to work with national governments to launch a STEM programme from primary school upwards and want to create more local based opportunities for people to access and benefit from F1 events.
Empower – Liberty Media aims to enhance innovation and diversity from driver talent to talent within the organisation, with championing employee wellbeing and mental health as a priority.
What Does This Mean For F1?
This strategy plan is quite telling in that F1 wants to become more environmental friendly, with increased efficiency in various departments from broadcasting to going net zero carbon by 2030.
In order for that to happen, Liberty Media are going to need to form closer relationships with the FIA and teams, particularly given the powerful veto that Ferrari have on design and rule changes whilst ensuring that teams operate in a cost-effective manner.
Marketing is also going to be a key element in terms of expanding the sport’s reach through a multitude of commercial deals and launching a STEM programme to engage future engineering talent from primary school age upwards.
Another element in order to reach new fans will be the expansion of the Esport championship which is proving increasingly popular for sporting gamers, of which many could form the next generation of F1 fans and inspire future generations.Embed from Getty Images
Diversity however will be a crucial part of the future off the back of a successful debut season of the W Series. Billy Monger could also benefit from this commitment to improve diversity on the grid as he looks become F1’s first double-amputee driver, after losing his legs in a British F4 crash in April 2017.
Another impressive commitment as part of the strategy is to improve wellbeing and mental health of employees through various new initiatives, given the increasing rise in mental health issues and suicide rates around the world.
This decade therefore going to be one of vast change in F1 on and off track as the sport looks to the future in many different areas.