Paper Example on The Andretti Family: A Success Story of Perseverance and Versatility in the Race Car Industry

Introduction

Family businesses often form the mainstay of most economies since they always spur the much-needed innovation, creating jobs. The Andrettis racing family has made a significant contribution in the race car industry despite the inherent competition (Maier, 2018). The success of the family in the industry is premised on their perseverance, team performance, and versatility. Notably, the Andretti family illustrates the six traits of strong family businesses anchored on a value system, vision for the future, family governance, involvement, cohesion and interaction, and leadership principles and roles. Concerning the value system, the Andretti family is woven around the unity of members and focuses on creating a framework to enhance the family legacy and its relationship with the racing community (Ward, 2016). Mario Andretti, the family patriarch, built the brand spanning generations and attributed the enrichment of a participatory environment for race fans. The value of the system demonstrated by the Andretti family has sustained the business amid underlying challenges in the race car industry. Further, the Andretti family illustrates the future vision, which forms the hallmark of strong family businesses. Andretti Autosport's CEO, Michael Andretti's focus on improving the family's business and making sustainable in the future by adequately deciding on the best engine sponsor, illustrates his commitment to growing the empire.

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Undeniably, the current business environment is characterized by increased complexity and ambiguity and requires the setting of family business' goals hinged on priorities. In the Andretti family, Michael recognizes the volatility of racing, and he is focused on setting new goals to sustain the race team enterprise. Moreover, the success of a strong family business is illustrated by elaborate family governance (Ward, 2016). The Andretti family has set an elaborate structure that determines the decision-making and exercising of authority. After the traditionalist Mario Andretti, his three children Michael, Jeff, and Barbra, were integrated into the family business. Undeniably, this helped in establishing strong commitment devoid of conflict that always brings down large family businesses. The Andretti family business further illustrates involvement, which has contributed to its enhanced foothold in the race car industry. The Andretti family has constantly involved important players such as sponsors, hence its emergence as a strong family business (Maier, 2018). Also, the Andretti family has demonstrated cohesion and interaction. The family has built the business on the platform of mutual understanding and resilience. Regarding leadership principles and roles, the Andretti family through Andretti Autosport's CEO, Michael has demonstrated the best leadership practices aimed at addressing contemporary challenges and sustaining the business into the next generations.

Contribution of Mario Andretti's Legacy to Andretti Autosport's Competitive Advantage

Understandably, gaining a competitive advantage in any industry is instrumental in enhancing the success of the business. Mario Andretti's legacy is premised on a common drive to win, and the desire to sustain the business into the future has greatly boosted Andretti Autosport's competitive advantage. Emphasis on team performance and perseverance has reshaped the Mario Andretti's legacy, thus making business to gain the much-needed competitive advantage. Mario Andretti succeeded in building his legacy around invaluable talents such as versatility, driving knowledge, name recognition, and a winning capability that have improved Andretti Autosport's competitive advantage. More fundamentally, Mario noted that the acceptance of change, adaptability to it, and addressing emerging challenges are critical for the success of a business, and more importantly, on the ability of Andretti Autosport to edge its competitors. Additionally, the creation of a participatory environment for race fans, which was central to Mario Andretti's legacy helped Andretti Autosport enhance its stranglehold on the race car industry. The desire to achieve victory embedded in Mario's legacy has helped improve the global reach of the Andretti brand, thereby contributing to the business' competitive advantage.

From the business alliance perspective, Andretti Autosport has cultivated strong collaboration with engine sponsor, Honda Motor Company, Ltd. (Honda). The company has helped Andretti Autosport in research and development experiments, especially on car horsepower (Maier, 2018). The business alliance with Honda has guaranteed the provision of manufactured parts, electronics, and computer engineers who have greatly supported Andretti Autosport in their annual racing activities. The partnership of Andretti Autosport with Bridgestone America's Firestone has significantly helped drive fan engagement necessary to spur competitive advantage. Equally important, the IndyCar racing series sponsorship has helped provide financial support that contributes to Andretti Autosport's competitive advantage. Moreover, building brand equity with sports stars and reputable entertainers has enhanced social media's dominant presence, helping to drive fan engagement. The much-publicized 100th anniversary running of the Indy 500, where there was a two-seat ride between Lady Gaga and Mario, contributed to the social media presence of the brand (Maier, 2018).

Andretti Autosport Diversification and Engine Sponsorship Decisions

In light of the volatility of racing, Andretti Autosport must create diversification that cuts across various racing disciplines. Sustaining Andretti racing operations requires financial resources. Therefore, Michael, Andretti Autosport's CEO, should make strategic decisions on the best engine sponsorship heading into the future. Undoubtedly, evaluation of engine sponsorship using resource-based view (RBV) of business strategy and entrepreneurship is critical, enabling Andretti Autosport to achieve competitive advantage in the ever-increasing competition in the race car industry (Maier, 2018). Notably, the use of intangible resources such as business knowledge and driving experience will help Andretti Autosport create value for sponsors, leading to success. More significantly, reputation, brand recognition, and team-organizational process of the company will be integral in creating an inimitable array of resources that will enhance its competitive advantage. The versatility that has been exhibited by the company's CEO will be vital in determining the best decision regarding engine sponsorship that will sustain the company into the future.

Furthermore, Andretti Autosport's establishment of real estate assets that includes car assembly point, pit lane practice pad, and race preparation bays has helped enhance the company's value by reducing production cost. Also, elaborate petroleum outlets and distribution channels have played a key role in bolstering the company's inimitability in the race car competitive environment. The organization of the available resources is central to the achievement of competitive advantage. Effective use of Andretti Autosport's tangible and intangible resources will help create a formidable framework and mechanisms that will guide full exploitation for the overall benefit of the company (Maier, 2018). More critically, adequate utilization of Andretti Autosport's talented individuals and developing rare systems and processes will undoubtedly help the company make the best decisions regarding appropriate sponsorship that will continue spurring its progress.

Influence of Brand Sponsorship, Digital Marketing, and Social Media Platforms

Andretti Autosport's increased foothold in the auto racing business is directly attributable to improved brand sponsorship. Further, the continued embracing of digital marketing and promotion through social media platforms has helped enhance its success. Worth noting is that brand sponsorship has significantly enhanced the Andretti Autosport image and developed an emotional connection to their brand. The enhanced image has helped develop positive consumer attitudes hence the company's sustainability in the auto racing business. Moreover, brand sponsorship has influenced the company's global outreach of its brands, which has helped in their continued success (Maier, 2018). In the same vein, brand sponsorship generates monumental financial support that has been integral in conducting different operations of the company. The strong relationship between Andretti Autosport and its brand sponsors has been exacerbated by a string of victories that the company keeps registering, thereby creating a win-win situation. More importantly, brand sponsorship provided the much-needed differentiation from competitors, thus allowing Andretti Autosport to achieve a competitive advantage.

In the ever-changing global economy, digital marketing through the use of social media platforms has become necessary to spur the growth of any company. Digital marketing helps in enhancing sales hence defining the profit margins of the company. Social media reach has increased significantly to around 16 percent year over year, which has been instrumental in improving exposure for the company and race sponsors (Maier, 2018). Also, digital marketing has greatly helped in enhancing product visibility across various platforms, thereby contributing to increased sustainability. Notably, most youths, which form the foundation of race car fan base, have embraced technological gadgets. Therefore, promoting digital marketing helps in reaching a great number all at the same time. The focus of every business is to promote business, consumer, and employee relations. Social media platforms play a key role in fostering these relations, resulting in increased sustainability of the company in the auto race business. Further, social media platforms are important since they drive fan engagement necessary to enhance the company's sustainability.

Decision to Continue with Honda Engine Sponsorship

Undoubtedly, Andretti Autosport engine sponsorship with Honda has resulted in great success for both companies. Since Mario Andretti's legacy is hinged on perseverance, team performance, and versatility, it is important that it stays with Honda because it creates an environment for the improvement of the same. On the same note, the future of this enormous family business depends heavily on a sponsorship deal that will continue providing research and development experiments to improve the chances of Andretti Autosport registering many victories. Moreover, engine sponsorship with Honda will help build the Andretti brand that will undeniably span across generations. Deciding on Honda deal will be instrumental in reshaping the organizational structure of the company and make many people embrace the brand. Additionally, evidence has shown that the future of auto racing business lies in technological advancement. Embracing digital marketing will significantly extend the Andretti brand's global reach and, hence, increase success.

More fundamentally, Andretti Autosport, through its partnership with Honda, will adequately utilize social media channels that will greatly expose the brand to the world. Similarly, the Honda-Andretti Autosport partnership will elicit more fan engagement that is critical for the business's sustainability. As evidenced by high social media influencer scores, Honda will be a strategic engine sponsor for Andretti Autosport because it will create an active audience hence enhancing product awareness. Equally important, Honda will provide more financial support that will enable Andretti Autosport to operate more efficientl...