Given the high competitive pressure in many of today's markets, this topic is therefore of increasing importance to the business world. But, as already mentioned, this thesis, which is a type case, will focus on the effect for a car manufacturer, although the results will probably be similar in any sports field. The relationship between a manufacturer and the motor sport it functions in is based on four pillars:.
- Popularity of the sport .
- Changing profile of the car manufacturer .
- Changing profile of the car .
- Entry barriers .
Firstly, the popularity of the sport, car racing has been popular since the creation of cars. Automobiles have been raced to see which one was the fastest or the most reliable. Today, car racing is still a sport that offers entertainment to people all around the world in many forms and ways such as circuit racing, rallying, off road racing and drag racing. Although the preference of the audience might not always be the same all around the world, one or more forms of racing are always popular. In Europe, for example, Formula 1 and Rallying is popular, whereas in the United States NASCAR and Indy car racing together with drag racing seem to have the upper hand. This means that any car company can find a sport in which it can participate and sponsor.
The second reason is linked to the changing profile of the car manufacturer. During the last couple of years, car companies seem to have different ideas about the effectiveness of motor racing. Not too long ago, the three large Detroit car manufacturers (Ford, General Motors and Chrysler) used "Win on Sunday, Sell on Monday " as a motto. Currently however, Ford, which was one of the top three Detroit car manufacturers, for example, is pulling out of most of the car racing fields in which it was present. At the same time, however, Renault has become more involved in car racing through the creation of the Renault World Series which features racing cars in many different classes.
