Table of Contents

1.0 Introduction ................................................................................................... 2

2.0 Analysis of external environment ........................................................ 4
2.1 Macro environment ....................................................................................... 6

2.2 Micro-environment ........................................................................................ 9

2.3 Competitor analysis ..................................................................................... 12

2.4 Customer profile ......................................................................................... 14

3.0 Current state of McLaren........................................................................ 15

3.1 Business model ..................................................................................... 15

3.2 Resourcing and capabilities ..................................................................... 15

3.3 Internationalisation strategy ................................................................... 16

3.4 Entry modes.......................................................................................... 18

3.5 SWOT analysis....................................................................................... 18

4.0 Future strategies ........................................................................................... 19

4.1 The development of an EV range .................................................................. 19

4.2 Development of their presence the Indian market ........................................... 21

Conclusion ................................................................................................................ 24
Appendix ................................................................................................................... 24
References ............................................................................................................... 27

1
1.0 Introduction
Founded in 1963, McLaren is renowned as one of the world’s most illustrious high-
technology brands (McLaren Group, 2023). Existing “ to create breath-taking
performance road cars and deliver the most thrilling driving experiences imaginable
(McLaren, 2023). “Pioneering new technology, breaking industry norms and pushing the
envelope in speed”, is an approach that has created some of the most iconic luxury cars
in the last decade. Deep British heritage has led to their headquarters still being in
Woking, however their official dealer network now spans across 80 countries (McLaren,
2023), where nearly 4,000 people are employed worldwide (Rencken and Collatine,
2020). As with most, McLaren felt the impacts Covid-19 brought, seeing a reduction
£175m to £109m in revenue, from 2019-2020 (Reuters, 2020). The firm’s portfolio being
in the ultra-luxury automotive space has allowed revenues to recover mid-pandemic,
with 2020 ending at £384m (Figure 1) (McLaren Investors, 2020). Further recovery in
2021 saw £610m in revenue (McLaren Investors, 2022) (Figure 2), North America
making up 1/3 of that (Gibbs, 2019).

McLaren go beyond their core business of automotive art and have created strategic
partnerships with companies that provide innovative products and purposeful designs,
integrations aiming to help success in respective markets (McLaren, 2023). Projects with
brands such as Richard Mille and Tumi, add value to the ultra-luxury image used to
reach their wealthy target market (Neate, 2019).

McLaren’s international presence is spread over 80 countries, where they have

developed varied distribution partners like Avio Race (McLaren Applied, n.d.), dealership
programs and its own exclusive showrooms. As a result, this report will focus on the
internationalisation strategy on a global level. Assessing the external environment, the
firm’s current position and recommendations on future strategies.

Figure 1.

2
 (McLaren Investors, 2021)

Figure 2.

(McLaren Investors, 2022)

3
 1.0 Analysis of external environment
The global luxury automotive industry is valued at $616.36bn, a market where continued
growth is expected over the next decade (Research and Markets, 2023) (figure 3).
However, after a period of constant steady growth, the market is moving towards a
more unpredictable future due to the maturation (Porter, 1980). The increase of
externalities with detrimental effects (CLEPA, 2017) plays a role in this turbulence.
Covid-19 for example, saw the industry plumet to almost standstill. Figure 4 shows how
the confidence in buying vehicles dropped, leading to less new vehicles registered from
reduced purchasing (Fechner, 2020).

Figure 3.

(Research and markets, 2023)

Figure 4.

4
 (Fechner, 2020)

5
2.1 Macro environment
To assess McLaren’s macro environment, a PESTLE analysis has been utilised, analysing the external environment factors that may
have influence on McLaren (Sheffield Hallam University, 2019).
Factor Justification
Political
• The new trading compliances that Brexit has brought has negatively affected competitiveness for UK based
companies (O’Carroll and Topham, 2021), for example, import tariffs of a vehicle from the UK rose to 23%
(Irish tax and customs, 2022). Previously the EU was the UKs largest trading partner, suggesting a high level
of interconnectedness, with transport equipment being at the top of the commodity groups in terms of trade
(Gysegom et al., 2019) (Figure 5). The transition into finding new partners and trading routes is a slow
procedure.
• Different countries joining new trading blocs will also influence McLaren’s ease of trade, for example the UK
has announced it will join Trans-Pacific Partnership, where free trade will be available through 11 countries
(UK Government, 2023).
• The Russian and Ukraine conflict have halted production and caused supply shortages supply chain issues.
Heavy sanctions have been placed on Russia, who are major suppliers of key metals and fuel, impacting
commodity price and supply (Wood, 2022), increasing McLarens production costs.

Economic
• Post-pandemic consumer spending habits have changed, the USA for example, “the economy is expected to
have a strong recovery, however an unequal one”, with some households having thrived, whereas some
households have lost jobs and face income uncertainties (Remes et al., 2021). Causing disparity throughout
country and potential loss/gain of customers who have had a lifestyle change.

6
 • There are new markets that are becoming increasingly interested in the luxury automobile industry. For
example, China is expected to be the fastest growing market for luxury cars by 2030, where the $80,000-
$150,000 price band is currently driving growth (Guan et al., 2022), a range McLaren can exploit. Similarly,
India’s luxury car market is expected to increase by $700m by 2030 (Verified Market Research, 2023)

Social
• Consumer mobility behaviour is changing, it is expected that by 2030 one in ten cars sold will be a shared
vehicle, reducing the sales of private-use vehicles (Gao et al., 2016). Meaning a focus on family sized vehicles
is required, away from McLaren’s traditional style and something they haven’t attempted yet. This behaviour
change has created mobility as a service (MaaS), where various physical modes of transport are integrated,
reducing the need for the conventional vehicle (Hunter and Day, 2021).
• The current inventory crisis is training consumers to wait longer for delivery times, kicking off “build to order”
business models (Tummalapalli, 2023), something McLaren must be aware of and prepared for to stay
competitive.

Technological
• Consumer behaviour and awareness around electric vehicles (EV) is changing, as sustainability becomes a
key purchase motivator. The EV market is in its growth stage and has attracted more than $400bn in
investments (Cornet et al., 2021), disrupting the automotive industry as large investments are needed for
R&D with new supply chain partnerships necessary (Sundaram, 2018).
• By 2030, 15% of cars will be autonomous (Gao et al., 2016), in the next decade automakers will have to
define their strategic position – premium incumbents, attackers, fast followers or non-adapters. McLaren can
position themselves as “premium incumbents” as they are already an established premium player with strong
technical and commercial legacies (Bertoncello and Wee, 2015).

7
 Legal
• New regulatory targets in the EU and US now aim for an EV share of at least 50% by 2030 (Cornet et al.,
2021), leading to increased governmental pressure on the output of EV.
• Copyright laws throughout the world can differ slightly, over the last decade Chinese have been blatantly
stealing designs of western counterparts (Bush, 2019), which can affect the credibility of McLarens brand
image.

Environmental
• More stringent targets for climate change, the EU released the “fit for 55” program, which seeks to align
climate, energy, land use, transport and taxation policies to reduce net greenhouse gases emissions by 55%
by 2030 (Cornet et al., 2021).
• Entity management is essential in the current automotive markets, “manufactures must know the ultimate
sources of every component that goes into their products” to avoid any unsustainable or conflict materials
being used. Teams and software are needed to stay on top of the “time consuming” task (Mcmenemy, 2019).

Figure 5.

(Gsyegom et al., 2019)

8
2.2 Micro-environment
Porter’s five forces model (1979) was utilised to provide a template that analyses an industry, to determine strengths and weaknesses
within them (Dobbs, 2014).
Force Score Justification
Threat of Low
new • Threat of new entrants is relatively low due to intensive capital requirements, agile product development
entrants and product diversification strategies of existing players (MBA, 2022).
• Alongside this, innovation and R&D are essential in the market to stay competitive, new entrants who
haven’t established solid profits to re-invest will struggle to keep up with technology trends and lose out to
competitor advantage.
• To add to this, established brands like McLaren can benefit from economies scale, making low pricing entry
strategies difficult to achieve.
• Current frameworks in the way of licenses and legal regulations impose further challenges on new firms,
the long and intricate procedure puts off new entrants (Henry, 2018). For this reason, the threat of new
entrants is low.

Threat of Moderate
substitutes • The threat of substitutes has been classified as moderate due to the mix of high and low threats. Firstly,
more efficient alternative transport is on the rise (Chechulin et al., 2021), in the past poor public transport
put people who could afford vehicles off using it, however better options in the way sharing and public
transport combined with the increase of sustainably minded people has caused this to become a threat.

• Another threat is the rise of EV vehicles, a market that growing rapidly and offer consumers with a whole
new range of luxury options. Within these markets there are companies who focus on just EV and those

9
 who focus on both (traditional and EV). Those who do just focus on EV, have the capacity to maximise
their output and provide competitive vehicles, attracting sustainable minded consumers away from classic
ranges.

• However, the threat can also be low as customer loyalty within the elite customer segment is very high
(Gilsenan, 2021), they are often looking for an image or driving experience that only their desired brand
can offer.

• McLaren are also able to offer a unique selling point, as being a quintessentially modern and British sports
car (McLaren, 2022), lowering the threat of substitutes as only Aston Martin and Bentley can play to this
strength.

Bargaining Moderate
power of • The automotive industry relies on suppliers to provide essential and specific components, which are often
suppliers hard to come by. These suppliers have the ability to increase prices as and when they feel fit, knowing
that companies like McLaren will still purchase them.

• Alongside this, switching costs of suppliers in this industry is high due to competitive partnerships,
suppliers can use this knowledge and again, increase prices.

• Companies often form strong partnerships, with clear contracts to mitigate issues such as these, with back
up options in-place if the suppliers use their power against the company. For example, McLaren have two
high performance brake suppliers, Surface Transforms and Akebono (The Brake report, 2021; McLaren,
2014).

10
 • Also, the industry being very capital intensive discourages suppliers when considering forward integration.
These factors combined make suppliers power moderate.
Bargaining High
power of • Information is easily accessible to current customers, they have the ability to do in depth research and
buyers comparisons on the vehicle options that are available to them, making any competitive advantage brands
may have very visible. Research into brands can also uncover any past scandals a brand may have been
involved in, which can put customers off.
• The luxury automotive market makes differentiation within brands difficult, only recently have companies
in this market moved away from the classic super car style, towards SUVs. However, they often only have
one option to pick from, making differentiation low and increasing buyers’ powers.

• With such large sums of money being spent, customers expect perfection, small problems can put
customers off and with the large number of competitors in the market, make switching costs low.

Competitive High
rivalry • Within the luxury automotive industry there is a high amount of competition, all targeting a similar
customer base, all of whom are established brands with high innovation and marketing abilities.
• Alongside this, large brands within the mainstream automotive industry are having a go at their own
versions of luxury cars, further adding to the competition.
• Companies in the luxury car industry tend to have long life spans due to success they can have, meaning
industry exits are rare and natural transitions of key players are less common.
• The world economic forum (2023) expect that emerging markets will grow by more than twice the speed
of developed markets in 2023, meaning space for more competition in the market will increase.

11
Porter’s five forces analysis provides evidence for the luxury automotive industry being
in the maturation stage of its life cycle as it is not an attractive market for new
businesses to join. The fiercely competitive nature of the industry combined with
bargaining powers of buyers and suppliers makes the barriers to entry very high, a
favourable situation for the already established businesses. These businesses must
continually monitor their critical success factors, those being customers and competitors.
Any new trends/strategies must be identified, otherwise they will be at risk of losing
competitive advantage. Appendix 1 provides an example of scenario planning from
issues these analysis’s raise.

2.3 Competitor analysis

Figure 6 identifies market positioning throughout the industry in a perceptual map.
Appendix 2 provides evidence.

Figure 6.

The map identifies McLarens closest competitors, showing how Ferrari, for example,
must be closely monitored. This direct competition offer similar products and image to
the same target market, all having innovation at the centre of development. McLaren
must uphold competitive advantage to not lose out, however figure 7 shows how Ferrari
have quadruple McLaren’s market share. Ferrari saw €5.1bn in revenue in 2022 (Ferrari,
2023), through superior sporting heritage and its averagely higher price (The Car Guy,
2022). Using their image to fuel growth; Ferrari world, watches by Ferrari, the Ferrari
museum and being featured in multiple films and TV series (Alonso, 2023) have been
successful strategies, increasing their global presence and contributing to their market

12
share. Ferrari also save costs through backwards integration, by producing their own
engines, which they also sell to other brands.

Figure 7.

(Giorgio, 2017)

Indirect competitors are identified to assess the market fully, Mercedes, BMW and Audi
sit in the middle by offering options to a wide customer base through differentiation.
Figure 8 shows how these all-rounder brands can still be competitive in the luxury-
market through their premium ranges.

Figure 8.

(Carlier, 2023)

13
2.4 Customer profile
By creating and analysing a customer profile, McLaren can predict potential trends that
may influence their customer base, having this knowledge will help them to gain first
mover advantages. McLaren and its competitors have very similar customer bases due
the high quality and high prices they provide, depicted in figure 9.

Figure 9.

14
 1.0 Current state of McLaren

1.1 Business model

Based on Porter’s generic strategies (1980), McLaren follow a differentiation focus
strategy through its attention on engineering and technology. By focussing on speed,
handling and technology, McLaren can target a niche who aren’t price-sensitive (Bello,
2022). The competitive advantage McLaren have from this comes from vertical
integration. Controlling the production process, engineering and sales, design and only
outsourcing to reputable suppliers who will cater to their specific needs (Rehman, 2023).
Producing their own components, where possible, allows them add value by removing
third party fees, reducing costs whilst ensuring high quality. Appendix 3 outlines their
overall business model, informed by their vision to “exist to create the most breath-
taking performance road cars”.

McLaren use a premium pricing model, with average prices at $400,000 (Hawley, 2022),
helping them execute their business model. Creating exclusivity and generating higher
revenues lets McLaren achieve their value propositions to an ultra-wealthy market.
Whilst providing capital for the most efficient, innovative and highest quality resources
and partners in the world.

1.2 Resourcing and capabilities

The distinctiveness of capabilities their model gives, allows McLaren to adopt a resource-
based view (Barney, 1991), optimising resources and capabilities through this gives
McLaren sustainable competitive advantages (SCA). Using intangible and tangible
resources maximises capabilities, the VRIO framework (figure 11) shows their individual
abilities in competitive advantage (Barney, 1995).

Figure 11.
Resources Valuable? Rare? Hard to Organised Competitive
imitate to capture impact
value?
Dealerships • • • • Competitive
parity
Manufacturing • • • • Competitive
parity

15
 Distribution • • • • Competitive
parity
R&D • • • • Short term
competitive
advantage
Brand • • • • SCA
image/recognition
Partnerships • • • • Competitive
parity
Employee talent • • • • SCA
Reputation • • • • Competitive
parity
Heritage • • • • SCA
Technological • • • • SCA
innovation
Key:
• - yes
• - no

Figure 11 indicates where McLaren gain SCA, these resources are hard to come by and
are often built up over multiple years, making them very hard to imitate. McLaren
capture value by being “a prominent example of a British technology company with
innovation at its heart” (UK Government, 2016), with access to pool of highly skilled
talent, allowing them to create high quality vehicles. Combining this with their brand
image of having “winning DNA” (Grange, 2022) and their deep racing heritage McLaren
have built an experience in owning one their cars with a reputation of exclusivity,
making them one of the most desired super cars in the world (Auto Car, 2022). The way
their SCAs work together provides further edge on competitors. Moving forward,
McLaren can use their current SCAs to develop, where possible, their other resources
and drive sales.

1.3 Internationalisation strategy

The integration responsiveness framework (Prahalad and Doz, 1987) (Figure 12), has
widely been used to been used to explain the strategies and organisational settings of
multi-national corporations (Dorrenbacher and Geppert, 2016). McLaren operate a
transnational strategy (McLaren, 2020), where a business with centralised operations
based in one country also has additional operations overseas (Smartling, 2023). In this

16
strategy, a company aims to maximise local responsiveness whilst trying to gain the
benefits from global integration (Bruin, 2017) (appendix 4). Achieving global integration
through outsourcing smaller, more specific materials from around the world, leather
imported from Italy, for example (McLaren 2023). By utilising the global supply chain
and creating strategic supply partners, McLaren can benefit from economies of scale and
scope whilst meeting the high quality standards in-place. McLaren engage in local
responsiveness through joint ventures with dealerships and opening their own across the
world, tailoring products to local markets. For example, in the UAE they created a
bespoke version of its 720S model, the “Zenith Black” edition, catering to local
preferences (Sim, 2017) and capturing the market. Using this approach gives McLaren a
competitive advantage as they can capitalise on the benefits from both global integration
and local responsiveness. With the aim of continued international growth, McLarens
transnational strategy allows them to centralise some operating decisions and
decentralise others (Tran, 2023) which creates effective and efficient decisions to drive
expansion.

Figure 12.

McLaren internationalise to increase growth, stay competitive and widen their customer
reach (Phillippou, 2018). Their differentiation focus of innovation and high quality in
super cars, creates the perception of superiority (Porter, 1985), necessary for their
affluent market. However, this closes off potential wealthy consumers in less developed
markets due to limited attention on them, reducing their global scope. Also, only
focussing on a single industry can lead to a lack of portfolio diversity.

17
 1.4 Entry modes
McLaren adopted different entry strategies and currently use a mixture. Being based in
the UK with a large global presence, results in them directly exporting 90% of their
vehicles (McLaren, 2021). Allowing McLaren to keep control over their foreign market
plan whilst providing attention on their marketing strategies to increase awareness in
their current markets (Gunnarsson, 2011). However, direct exporting stops McLaren
from gaining international experience (Wach, 2014) and also opens risks from trading
blocs. For example, North America is their largest exporter (McLaren, 2021), where strict
licensing laws on exporting that must adhered are in place (International Trade
Administration, n.d.). To combat these effects, McLaren have engaged in joint ventures
by giving foreign dealerships import rights, providing specialist knowledge of the local
market and understand governmental contracts (Channon and Bonnici, 2015). They
have engaged in this strategy across multiple regions to provide a wide spread of
knowledge, such as; Infinity Cars, India. Also helping McLaren to offer localisation
services. However, this mode can lead to a lack of clarity between responsibilities,
potential clashes in management styles and can stump long-term growth (Chao et al.,
2014).

1.5 SWOT analysis

A SWOT analysis (figure 13) has been used to summarise the key points covered,
analysing strengths and weaknesses whilst assessing external opportunities or threats to
inform future strategies.

Figure 13.
Strengths
• Brand image/recognition
• Technological innovation
• Vertical integration
• Range of partnerships
Opportunities
• EV market
• Autonomous market
• New markets
• Growing demand for luxury goods
Weaknesses
• Non-diverse portfolio
• Dependence on key markets like
the US
• Limited brand awareness in
emerging markets
Threats
• Rising concern over sustainability
• Increasing fuel costs
• Competitive rivalry
• Political unrest – Russia - Ukraine

18
4.0 Future strategies

4.1 The development of an EV range

The TOWS matrix (Weirich, 1982) on the SWOT analysis identified a gap between the
limited portfolio and the rising EV market (WO). McLaren should introduce an EV range
of vehicles with both their classic style and a 4x4 option. By following this
recommendation, McLaren engage in product development of Ansoff’s matrix (1957).

As identified, the EV market is in its growth stage (Woodward et al., 2020) and is
expected to grow exponentially over the next decade (Statista, 2022) (figure 14).
Electrification will differentiate the top luxury car brands by 2030 (Guan et al., 2022),
with McLarens ability in innovative technology combined with the increasing social trend
in sustainability there is an opportunity to capture this differentiation and become a
major competitor. By creating this range, McLaren are also kicking off a new section of
their business model that will soon be the only model they follow. For example, from
2030 the UK will ban sales of new petrol/diesel cars (Dron, 2022). Alongside this,
McLaren currently only have one hybrid option, the Artura, with a small range of 19
miles on the battery (Carson, 2023) and hasn’t attempted different styles. By
introducing a fully electric range, McLaren have the ability to gain a first mover
advantage as their closest competitors also only have hybrid options on the market.
However, Bentley have similar strategies in place with their “beyond100” plan, making
this recommendation time sensitive. By including a 4x4 option in this range, McLaren
can also become competitive in the SUV market.

Figure 14.

19
 (Statista, 2022)

Producing an EV range would not require any large changes in their current operations
or infrastructure. Their core functions of distribution and logistics can stay the same,
whilst R&D, technology and design departments can use all their existing facilities just
with a new focus, with only a small need for new equipment/machinery, limiting the
initial investment needed. To benefit from economies of scale whilst also gaining product
expertise, McLaren should consider a strategic alliance with LG Energy Solutions (LGES),
who have the second highest market share in the EV battery market (Venditti, 2022).
The market leaders, CATL, already have contracts with car brands, making a more
favourable contract with LGES likely. This alliance allows McLaren to focus on their SCA
of innovation whilst still receiving high quality batteries. This develops their other SCA of
brand image, through explicitly integrating sustainability into operations. An issue that
may surface is the concern around charging, LGES currently produce a battery that is
used and kept within homes (LGES, 2023), creating an opportunity in an adapted
version to charge EVs, which can be sold as part of the range.

Figure 15 outlines the action plan for implementation.

Figure 15.

20
 (39 words)

4.2 Development of their presence the Indian market

Again, using the TOWS matrix (Weirich, 1982) on the SWOT analysis identified a gap
between the development into new markets and brand recognition (SO). Currently,
McLaren reach their Indian clientele through a deal that gave Infinity Cars exclusive
import rights. Whilst this has been a successful entry strategy, it puts dependence on a
single partner to meet necessary sales and also limits market access. McLaren need to
develop their own presence to build and sustain its success in the Indian market,
through a market development strategy (Ansoff, 1957).

21
India is already the fastest growing economy in the world, and is on track to be world’s
third largest economy by 2027 (Morgan Stanley, 2022). With this, the luxury car market
is expected by to rise by just under $700m by 2030 (Verified Market Research, 2023)
(figure 16). The entry should be completed via an acquisition where the McLaren name
and brand takes over the acquired company. For Example, Infinity Cars, with a
relationship and success already established, McLaren can re-brand, excluding Infinity
Cars identity. With the SCA of brand recognition, they will instantly be accredited,
quickly building trust and driving revenue (Ord, 2021). The initial cost will be high,
however the potential ROI and competitive advantage gained will make it a worthy
investment. This entry mode allows McLaren to have access to market specialists and a
wealth of resources, reducing the barriers to entry. The UK and India are currently in the
final stages of a free trade agreement (UK Government, 2023), reducing trade costs,
which can be re-invested to help cover the initial investment costs.

Figure 16.

(Verified Market Research, 2023)

India also offers unique advantages in lower production costs and strategic placement
for Eastern countries. McLaren could look to create a manufacturing and operations hub
for Asia-Pacific markets through a greenfield investment. Markets forecasting to see the
highest growth between 2021-2026 (Guan et al., 202). McLaren can then benefit from
India’s cheap manufacturing costs whilst putting them closer to their Asia-Pacific
counterparts, providing a more efficient service into this region. Alongside this, McLaren
can benefit from the trade blocs India are a part of, like ISCECA. Physical distance and
the trade blocs will heavily reduce trading costs, savings can then be re-invested to help

22
cover the initial investment. This could be seen as damaging their luxury image, to
combat this, McLaren must make a hub on a similar scale to their Woking HQ and show
explicit actions in McLaren expertise training. Jaguar Land-Rover took a similar route,
with a manufacturing plant in India and have reaped success, seeing a 38% revenue
increase in eastern countries two years after (The Economic Times, 2013), whilst
withholding its luxury image throughout the world.

Figure 17 outlines the action plan for implementation.

Figure 17.

(54 words)

23
Conclusion
McLaren are one of the world’s leading luxury vehicle brands, instantly recognisable
through pioneering technology that has created some of the most desired super-cars.
The global luxury car market is expected to almost double in size by 2030, this combined
with low threat of new entries, makes it an attractive market to established in. However,
bargaining powers of buyers and suppliers with high competitive rivalry make it an
environment where critical success factors must be closely monitored. McLaren have
achieved international success through a successful transnational strategy, with a base
in the UK and international partnerships deals they reap the benefits of global integration
whilst having a presence abroad through a range of dealerships, helping localisation. The
SWOT analysis provided an opportunity to identify strategies for future development.
Firstly, through the production of an EV range, preparing for the inevitably electric future
and to become competitive in the luxury 4x4 market. Also, through an expansion into
the growing Indian market, in an acquisition where the McLaren brand takes over. India
also offers the opportunity to open their Asia-Pacific operating and manufacturing hub.
To promote future growth and remain competitive, McLaren should implement the
recommendations set, designed to support and enhance their current internationalisation
strategy.

Appendix
Appendix 1:
Appendix 1 shows an example of where scenario planning can be used to mitigate issues
that are identified in the PESTLE and Porters Fiver Forces analysis. In this example, a
plan for the development of environmental targets has been illustrated.

24
 (Source: Author)

Appendix 2:
This appendix shows examples for the reasoning behind positioning in the perceptual
map.

Rolls Royce:
• “65% of all Rolls Royce cars ever to emerge from production are still operational
today” (Evans and Hood, 2022).
• Average cost is between $400,000-$465,000 (Bradley, 2023).
Jaguar:
• “Plagued with quality issues” but working back towards its former high-quality
image (The Car Guide, 2022).
• Average price between $50,000-$80,000 (Jaguar Santa Monica, 2023)

Appendix 3:
This appendix shows McLarens business model canvas, as referenced in 3.1
Key partners Key activities Value Customer Customer
Pierelli Manufacturing, propositions relationships segments
Gulf designing and To create breath- -One-on-one pre- Demographic:
Infintite World distributing taking purchase meetings 30-70 years
Akzonobel luxury vehicles. performance cars -McLaren ownership Gender neutral
Dell whilst providing a experience Ultra-wealthy
holistic view to - High level of
sustainability. customer care Psychographic:
Key resources Channels Car enthusiasts

25
 -Distribution To create cars -Dealerships Collectors
networks with astounding -Online store Formula 1 fans
-The brand track performance -Events
-Intellectual that are -Social media,
property astonishingly easy mainstream media,
-Human to drive on the PR
resources road.
-Supply network
-Manufacturing To be a pioneer in
and production new technology
facilities and innovation.
Cost structure Revenue streams
Operational costs – labour, rent Automobile sales
Marketing campaigns Other brand partnership sales – e.g. McLaren x
R&D Richard Mille
Manufacturing Leasing/financing
Fleet vehicles

Appendix 4:
This diagram gives a visual representation to the internationalisation strategy that
McLaren adopts. Showing how the HQ and overseas operations work together to provide
a rounded and effective approach.

(Bruin, 2017)

26
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