Marketing Principles: SWOT Analysis, Ansoff’s Matrix, Threat and Opportunity Analysis, Strategic Recommendation

This article discusses the SWOT analysis, Ansoff’s Matrix, threat and opportunity analysis, and strategic recommendation for OzCo, an Australian boat manufacturing company. It also provides insights into the company's strengths, weaknesses, opportunities, and threats.

Running head: MARKETING PRINCIPLES
Marketing Principles
Name of the Student
Name of the University
Author’s Note

1MARKETING PRINCIPLES
Table of Contents
SWOT Analysis...............................................................................................................................2
Ansoff’s Matrix...............................................................................................................................3
Threat and Opportunity Analysis.....................................................................................................4
Strategic Recommendation..............................................................................................................5
References........................................................................................................................................7

2MARKETING PRINCIPLES
SWOT Analysis
STRENGHTS WEAKNESSES
 Strong reserve of cash is a major
strength of OzCo.
 Strong growth of OzCo is a major
strength of the company.
 To be a market leader in Australian
market is another major strength of the
company.
 The high quality of luxury products is
a significant strength of OzCo (Kotler
and Armstrong 2013).
 Lack of experience for business in the
overseas market is a major weakness
for OzCo.
 In the era of technological
development, relaying upon the
traditional and outdated methods and
materials is a crucial weakness for the
company.
 Absence of new models of boats can
be considered as a weakness for the
company as it is declining OzCo’s
market portfolio.
 Low morale of the employees along
with their tendency to leave the
company is a significant weakness of
OzCo.
OPPORTUNITIES THREATS
 Faster growth in the overseas market
is a major business opportunity for
OzCo.
 The introduction of efficient
technology in the material and
manufacturing process can provide
opportunities to the business of OzCo.
 The fewer amount of restrictions on
the use of the traditional boats by the
overseas government can provide
significant business opportunity for
 The reduction in the size of Australia
domestic market is a major threat.
 The presence of substitute products is
another major threat of OzCo.
 The legislation of Australian
government to out restriction on the
use of some of the old boats of OzCo
is a major threat for the organization.
 The tendency of the technologically-
advanced boat builders to acquire the
small companies like OzCo can be a

3MARKETING PRINCIPLES
OzCo as the company will get the
chance to sell their old-model boats in
those overseas countries.
 The growing economic condition of
emerging nations is an opportunity for
the company.
significant threat for the company
(Sheth and Sisodia 2015).
Ansoff’s Matrix
Figure 1: Ansoff’s Matrix
(Source: Hussain et al. 2013)
MarketPenetrationProductDevelopmentMarketDevelopmentDiversificationProducts
Market
Existing New
Existing
New

4MARKETING PRINCIPLES
Threat and Opportunity Analysis
SWOT Analysis and Ansoff’s Matrix are considered as two of the major strategic
management tools for the identification of the threat and business opportunities of the business
organizations. There is not any exception of this fact in case of OzCo. The following discussion
shows the analysis on the threat and opportunities of OzCo as per SWOT analysis and Ansoff’s
Matrix:
Threats: As per SWOT analysis, the first threat is the reduction in the Australian market in the
presence of substitute products. It can be observed that the main substitute product of traditional
boats is highly technologically advanced boats. For this reason, the Australian customers are
more using these boats than the traditional boats. In addition, the Australian Government is
putting legislation that will restrict the sell on some of the models of the boats of OzCo and it
will decrease the sales and revenue of the company (Nowak et al. 2015). As per the Ansoff’s
Matrix, there are four kinds of threats that OzCo is facing. For market penetration, the company
does not have any strategy to encourage more people to use the traditional boats. After that, there
is not many variants in the current products of the company and it can create the treat of
reduction in the market share of the company. In addition, OzCo does not have any
diversification strategy of their products and thus, the customers cannot get new products from
OzCo apart from the traditional boats. This is a major threat for the company. It can be observed
that OzCo does not have any presence in the overseas market and it reduces the opportunity for
the company for the development of new market (Armstrong et al. 2014).
Opportunities: Apart from the threats, there are some major business opportunities for OzCo.
OzCo can take the opportunity of the faster growth in the overseas market for the boats by
developing technologically advanced boats for the customers. In this context, OzCo can take the

5MARKETING PRINCIPLES
opportunity of adopting high technology for upgrading their manufacturing process as well as the
models of the boats (Kiel 2014). Moreover, the case study shows that there are not many
restrictions on the traditional boat models in overseas and it provides OzCo the opportunity to
clear the stocks of traditional models of the boats. Most importantly, the growing economic
condition of Australia as well as the other countries is providing the company with major
opportunity to expand their business both in Australia as well as abroad. These are the major
business opportunities for OzCo in Australia as well as in abroad.
Strategic Recommendation
The above discussion indicates towards the fact that OzCo is in need of alternative
business strategies. The first strategy of OzCo will be the adoption of advanced technology for
the manufacturing process of the boats. The implementation of advanced technology will allow
the company to reduce the cost of production so that they can make modern types of boats for the
users. After that, OzCo is required to adopt the strategy of diversification and market
development (Kotler 2015). Under the diversification strategy, OzCo is needed to develop
different variants of boats so that the customers can get the opportunity to select their products
from large variables. This aspect will help the company in increasing the market share as well as
revenue. Under the strategy of market development, the company is required to think about
expanding their business in overseas market due to the presence of larger number of customers
there. In order to develop new market, OzCo is required to come up with technologically
advanced luxury boats as development of luxury boats is the strength area of OzCo. At the same
time, OzCo has the option to expand their business in different field apart from the
manufacturing of boats (Kotler, Kartajaya and Setiawan 2016). The case study indicates that a
group of wealthy customers still prefer to buy the traditional luxury boats. Thus, as a part of the

6MARKETING PRINCIPLES
strategy, OzCo is needed to identify those groups of customers so that they can make the
traditional boats for them. These are the main strategic alternatives that OzCo can peruse in near
future.

7MARKETING PRINCIPLES
References
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson
Australia.
Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., 2013. ANSOFF matrix, environment, and
growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), pp.196-
206.
Kiel, I.H., 2014. Entrepreneurial marketing.
Kotler, P. and Armstrong, G., 2013. Principles of Marketing (16th Global Edition).
Kotler, P., 2015. Framework for marketing management. Pearson Education India.
Kotler, P., Kartajaya, H. and Setiawan, I., 2016. Marketing 4.0: Moving from traditional to
digital. John Wiley & Sons.
Nowak, G.J., Gellin, B.G., MacDonald, N.E. and Butler, R., 2015. Addressing vaccine hesitancy:
the potential value of commercial and social marketing principles and practices. Vaccine, 33(34),
pp.4204-4211.
Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the
future. Routledge.