Marketing Principles

This report discusses the importance of adopting technology in business operations and analyzes the situation of OzCo Boats, a boat manufacturing company facing issues due to outdated technology. It includes a SWOT analysis and Ansoff Matrix analysis to provide recommendations for the company's future strategies.

Running Head: Marketing Principles
mARKETING pRINCIPLES
Report
MAY 31, 2019

Marketing Principles 1
Table of Contents
1. Introduction..............................................................................................................................2
2. Industry Trends.........................................................................................................................2
3. Perpetual Map of Customer Segments.....................................................................................3
4. SWOT Analysis of OzCo.........................................................................................................3
5. Strategical Alternative Analysis...............................................................................................5
6. Recommendations....................................................................................................................6
References........................................................................................................................................7

Marketing Principles 2
1. Introduction
In the present era of technological development an organization needs to change the old pattern
of business or the traditional methods of producing goods. An organization needs to adopt the
technology to compete with the market competitors. If a company does not accept the
technological changes and adopt it in the business operations, the organization might loss its
market share or adversely affect its profitability in the future (AJ, 2015). This repost describes
the same situation with the help of a boat manufacturing company OzCo Boats. OzCo is facing
strong issues in its business because of its outdated technology in manufacturing boats. This
report includes SWOT analysis of the company and Ansoff Matrix analysis to better understand
the situation of OzCo. In the end of this report, a short conclusion has been added that helps the
company to deal with such situation.
2. Industry Trends
As there are large number of alternatives are available in the market in terms of new Boat
manufacturing companies who manufacture the boats with the help of latest technology, people
will reject the old designed and quality boats of the OzCo. However, the government is going to
place fewer restrictions on the use of traditional boats. Apart from this, the modern and
technological advanced companies want to buy the small boat manufacturing companies such as
OzCo. However, the company has opportunities to expand its business in overseas where there
are huge opportunities for finding a new trading partner for he business, but the company have
no ideas or experience to operate its business overseas. It means the company has to work to
improve its technology to survive in the boat market (Russell-Bennett, Rundle-Thiele & Kuhn,
2010).

Marketing Principles 3
3. Perpetual Map of Customer Segments
4. SWOT Analysis of OzCo
SWOT analysis stand for Strength, Weakness, Opportunities, and Threats. These factors show
the current situation of any organization by analyzing these four key factors (Phadermrod,
Crowder, and Wills, 2019).

Marketing Principles 4
SWOT Analysis of OzCo
STRENGTH
1. High Quality of Boats
2. Experienced Staff
3. Good Image of the Company
4. Luxury product Item
WEAKNESS
1. Old technologies
2. Lack of experience in international
boat market
3. Tradition models of Boats
4. Low confidence of Employees
OPPORTUNITIES
1. The huge customer demand, as
boats are the luxurious items
2. No restrictions or very few
restrictions from the overseas
government
THREATS
1. High competition
2. Latest Technologies
3. Australia legislation
4. New Models
5. Number of Substitutes
1. Strength: The major strength of the company is that it was known for its quality
products. Apart from this, it is one of the old boat manufacturers in Australia, then its
good will be very good in the market. People are working in the organization from the
long time, it means they have lots of experience in boat manufacturing. Boat is one of the
luxurious items, so its demand will be never end.
2. Weakness: The major weakness of the organization is that it deals in old technologies.
The outdated technologies of the company are the major weaknesses. The lack of
experience in operating the business in overseas market is also limit the scope of market
expansion of the company. However, the increasing competition and decreasing demand
of traditional designed boats also leads to the low employee’s moral in the company
(Vaghely & Julien, 2010).
3. Opportunities: The great opportunities for the OzCo is huge future customer demand of
boats because Boat is a luxurious item. Apart from this, company has opportunities to
expand its market in the overseas market because of very few restrictions are in the
international boat markets.

Marketing Principles 5
4. Threats: Cut throat competition is a major threat for the OzCo in Australia. Apart from
this, the competitors are using latest technology in the boat manufacturing, which is also
poses threats for the company. The new Australian legislation against the old and
traditional outdated boats is really a worry for the OzCo. New models of boats and large
number of alternatives in the boat market creates another threat for the company.
From the above analysis it is clear that company has more weakness than its strength. However,
the company has opportunities to expand its market in overseas market, but lack of experience is
another weakness that restrict the company to go overseas. In such a situation, it is difficult for
the company to use the opportunities as existing threats may negatively affect the opportunities
as well. However, if company enters in the new market with traditional manufacturer of boats, it
may create a new market of boats where people can buy the traditional designed boats instead of
latest technology boats which is common for all (Ommani, 2011).
5. Strategical Alternative Analysis
The strategic alternative analysis, it is necessary to analyze the available alternatives for the
OzCo with Ansoff’s Matrix. There are following points, which can help in strategical alternative
analysis.
1. Market Penetration: The strategy believes that the existing customers are always better
than new customer’s and if organization provides better value and great services to the
existing cutover, OzCo can run the business in long run. Here OzCo needs to provide
high quality services to its customers (Bull, et.al., 2015).
2. Product Development: The strategy needs new product development with existing
technology that meet the customer demand in the market. However, it is possible if the
company utilize its production capacity, or wants to manage new entrants with new
products, or want to maintain its reputation with innovative product and protect its market
share. However, the main issue for the company is here to face the technological changes
(Navarra & Scaini, 2016).
3. Market Development: This strategy is used to entre in the new market with the existing
product. However, the OzCo has capability to introduce its existing product in overseas
market and increase its market share. This alternative is a best alternative among all,

Marketing Principles 6
because there is no legislations in the overseas market that restrict the company to operate
its business in overseas market (Al-Bostanji, 2015).
4. Diversification: This strategy is a different strategy because in this strategy an
organization decides to abandon its current business and existing products and jump into
a new market with new product, which is not possible for the company.
6. Recommendations
In conclusion, it has been found that company has more weakness than strength. Although,
company has some opportunities to expand its market in new overseas market. From the
Ansoff’s matrix analysis, it has been found that company should use the new market
development strategy and should enter in the overseas market to protect itself from the high
competition and Australian legislature. Apart from this, company can sale its boats as traditional
boats, which is still a luxurious item for the people. However, if the OzCo does not want to enter
in the new market or overseas market, it should adopt the market penetration strategy and sale its
existing products with new features, value, and services to customer to survive in the market.

Marketing Principles 7
References
AJ, H. (2015) Tools to Use in the Analysis of Potential New Market Expansion. Journal of
Entrepreneurship & Organization Management, 4(1), pp. 1-2.
Al-Bostanji, G. M., (2015) Impact of Applying of Ansoff Model on Marketing Performance for
Saudi Foodstuff Companies. Journal of Marketing and Consumer Research, Volume 15, pp. 71-
81.
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C.,
Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E. (2016) Strengths,
Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services
framework. Ecosystem services, 17, pp.99-111.
Navarra, D. & Scaini, L. (2016) European Scientific Journal. Improvements In The Strategic Use
Of The Marketing Matrices Applying Dynamics Parameters Based On Time: A Better Analysis
Of Prospect, 12(10), pp. 1-20.
Ommani, A. R. (2011) Strengths, weaknesses, opportunities and threats (SWOT) analysis for
farming system businesses management: Case of wheat farmers of Shadervan District, Shoushtar
Township, Iran. African Journal of Business Management, 5(22), pp. 9448-9454.
Phadermrod, B., Crowder, R.M. and Wills, G.B., (2019) Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Russell-Bennett, R., Rundle-Thiele, S. R. & Kuhn, K.-A. (2010) Engaging Marketing Students:
Student Operated Businesses in a Simulated World. Journal of Marketing Education, 32(3), pp.
253-263
Vaghely, I. P. & Julien, P. A. (2010) Are opportunities recognized or constructed? An
information perspective on entrepreneurial opportunity identification. Journal of Business
Venturing, Volume 25, pp. 73-86.