Ventura Boats: Strategic Recommendations

This assignment analyzes Ventura Boats, a company manufacturing boats. It examines the company's strengths and weaknesses, focusing on how to leverage technology for international expansion and protect their market share. The analysis recommends strategic moves for venturing into overseas markets while maintaining quality and demand in both domestic and international arenas.

Running head: MARKETING PRINCIPLES
Marketing principles
Name of the student:
Name of the University:
Author’s note

1MARKETING PRINCIPLES
Introduction:
Through the analysis of the Ventura Boats Case study, the reports develops the
understanding regarding challenges present in business market. The nature of business of
Ventura and review of business process, challenges and opportunities increase the knowledge
regarding strength and weakness of the company. The analysis of the threat and opportunities
with support from marketing theories also helps in recommending alternative strategies that
Ventura Boats can take in the future to revive their business.
SWOT analysis of Ventura Boats:
Strength:
Ventura Boats mainly deals with designing high quality small-sized luxury boats.
However, their specialty is that they build the boats in traditional hand-build ways from
traditional materials. Their main strength is that as their business have prospered till now, they
have a strong reserve of cash. Strong cash reserve is likely to provide positive implications in the
area of long-term strategic growth and future market share. It is also indicative of strong
performance of the company till now (Enqvist, Graham and Nikkinen 2014).
Weakness:
One of the major weak point of Ventura Boat is that despite the availability of newer and
efficient technologies in materials and manufacturing processes, the company has still not
embraced new technology. The technology used for manufacturing the boat is very outdated and
this is the major reason for decline and low demand of many of its product in the Australian

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market. Secondly, the dependence on traditional methods and materials to build boats is likely to
hinder their growth in overseas market too.
Opportunity:
The possibility of minimum restrictions imposed by overseas government on the use of
traditional boats is an advantage for Ventura boats. They can use this opportunity to expand their
traditional business in overseas market. This will help them to overcome the challenges of
domestic markets. As there is a prediction that Australian government legislation is likely to
restrict the use of some of their traditional boats, they can seize the opportunity of fewer
restrictions on traditional boats in overseas market. This will help them to expand their business
as well as legalized their traditional products for many more years to come. The other advantage
of doing business overseas is that the company may offer unique products that may not be
available in that region and the product may become a high demand products among new base of
customers. This is likely to mitigate threats in business. Secondly, shifting business to overseas
might give great exposure to the company which will eventually benefit their business (Hohentha
et al. 2014).
Threats:
Considering the decline in many of the traditional boats produced at Ventura Boats, the
company could have used their experience in industry to adapt new and efficient technologies to
make innovative products. However, this move of Ventura Boats can be threatened by the
illegalization of many of their current products. Thus means a decline and loss in business not
just for Ventura, but also for all traditional boat manufacturing companies too. The research by

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Habtay. and Holmén (2014) also suggest that antecedents of disruption can differ based on the
type of technology or market driven business model used in firms.
Threats and Opportunities Analysis:
By conducting the SWOT analysis for Ventura Boats, the main factor that has been
identified to be a major threat in its business is the lack of application of advanced and efficient
technologies in materials and manufacturing process for boats. This is indeed a great threat for
the company because technology can provide both tangible and intangible benefits to business
that influences customer demand. If a company remains updated with the use of technology in its
services, it can positively influence business operations. If the Company is capable enough to
offer new products with the use of advanced manufacturing material and technology, it is likely
to facilitate value creation of the firm too (Jaakkola and Alexander 2014). However, dependence
on traditional methods and no efforts towards innovation in business process can hinder the cash
flow as well as shrinkage of service or products in target market.
Ventura Boats have not yet manufactured any new boats with advanced technology and
this is likely to affect customer utility and customer’s demand for product too. This is because
product innovation is found to be directly linked with customer’s demand and engagement with a
company. Traditional methods of manufacturing products or service cannot the capture the depth
of customer responses and it affects the creation of loyal customers too (Cui and Wu 2016).
Customer satisfaction and customer loyalty are two important elements of marketing theory and
practice. A customer’s loyalty towards products can be maintained if the company is updated
with current demands of customers. This is in relevance with the customers demand theory
which states the relationship between customers demand for products and their prices

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(Jahanshani et al. 2014). Hence, more the effort is paid towards increasing the consumer’s
demand towards a product, the more likely is the opportunities of business growth and
profitability.
In the context of Ventura Boats, lack of application of technology is a major disadvantage
for them. They need to understand that the capacity for new technology is likely to accelerate
economic growth and reach new customers in a new way too. This approach would instead
support Ventura Boats to further strengthen their business and find ways by which they could
penetrate newer markets by the production of new models. They can also use lesser restrictions
of traditional boats in overseas government to sustain competitive advantage in business. This is
particularly important for business manager of Ventura Boats because recognizing the
appropriate opportunity in business can help them to take more targeted approach towards
fulfillment of business goals. Ventura Boast can use the opportunity of lower restriction of
traditional boats overseas to boost sale in overseas market (Achtenhagen, Melin and Naldi 2013).
Recommendations for strategic alternative for Ventura Boats in the future
The dependence on traditional products and little application of advanced manufacturing
technology and materials is the major limitation that can affect the business of Ventura Boats in
the future. A strategic alternative business options recommended for Venture Boats to save their
products form decline in the Australian market is that they must focus on investing on
technological infrastructure to contribute to manufacturing innovation. Adaption of new
processed in marketing and shifting to advanced methods in producing boats can also give them
the advantage of producing high quality goods and minimizing cost expense too. It can also
increase their ability to become more competitive by realizing efficient business operations

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through the use of technology. Focusing on existing technology in boat manufacturing can help
them to fulfill unmet needs that earlier led to the decline of the products. Integration of
technology in both products and business processed is a step towards competitiveness and value
creation (Adner and Kapoor 2010).
Another recommendation for Venture Boats is that they must engage in market analysis
of target overseas country to protect their traditional product. In this case too, use of technology
will support them to enter untapped market and stay ahead in the competition. The knowledge
regarding business practice, cultural factor of target country and demand of specific features in
product can help companies to successfully conduct business internationally. However, moving
business to international market is always associated with risk and business decisions should be
made by considering about culture, legal and regulatory barriers, Government assistance for
business and economic feasibility of the new market. This strategy can help Ventura Boats to
conquer untapped markets and increase the demand of their products too (Cavusgil et al.2012).
Conclusion:
The report summarized the strength and weakness present in the Ventura Boats company.
The analysis of the weakness and threats present in the company with support from marketing
theories and concept has helped in recommending effective alternative strategy for company.
Role of technology and tactical moves to conduct business in overseas market can be an effective
step for Ventura Boats to shift its business and protect the quality and demand of their boats in
domestic as well as international market.

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Reference
Achtenhagen, L., Melin, L. and Naldi, L., 2013. Dynamics of business models–strategizing,
critical capabilities and activities for sustained value creation. Long range planning, 46(6),
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Adner, R. and Kapoor, R., 2010. Value creation in innovation ecosystems: How the structure of
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Cavusgil, S.T., Ghauri, P.N. and Akcal, A.A., 2012. Doing business in emerging markets. Sage.
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Enqvist, J., Graham, M. and Nikkinen, J., 2014. The impact of working capital management on
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Habtay, S.R. and Holmén, M., 2014. Incumbents’ responses to disruptive business model
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Jahanshani, A.A., Hajizadeh, G.M.A., Mirdhamadi, S.A., Nawaser, K. and Khaksar, S.M.S.,
2014. Study the effects of customer service and product quality on customer satisfaction and
loyalty.