Marketing Principles for OzCo Boats: SWOT Analysis, Ansoff's Matrix and Recommendations

This study evaluates the ways through which OzCo can retain its market share and improve its profitability. It includes SWOT analysis, Ansoff's Matrix and recommendations for OzCo Boats.

MARKETING PRINCIPLES
1

Table of Content
Introduction................................................................................................................................3
SWOT Analysis of OzCo Boats.................................................................................................3
Brief discussion of Opportunities and threats............................................................................4
Future strategically analysis based upon Ansoff’s Matrix.........................................................5
Conclusion..................................................................................................................................5
Recommendations......................................................................................................................5
References..................................................................................................................................7
2

3

Introduction
OzCo Company is one of the eminent boat manufacturing companies in Australia. The
Company has been mainly focusing to enlarge its boat manufacturing and penetrate the
existing market. The organisation earned the praise from their customers for customer-centric
products. This study will evaluate the ways through which OzCo can retain its market share
and improve its profitability. The company had been in the difficult position while
penetrating in the international market because of less experience in the overseas market.
SWOT Analysis of OzCo Boats
Strengths
● The organisation’s B2C approach
helps to earn the praise.
● High quality, preferred-sized and
luxury boats.
● Adequate cash reserve
● Market leader in this particular
section
Weaknesses
● Less knowledge about the overseas
market.
● Failed to cope up with the business
flexibilities.
● Uses traditional model as well as
materials for building boats.
● Outdated manufacturing technology
● Old product portfolio
Opportunity
● Exploration of overseas market
● Emerging economy in overseas
countries with developing wealthy
customers
Threat
● Rapidly increasing in the
competitors
● New government policies to make
some boat type Illegal
● Threat of being sold out by
technologically advanced
competitors.
● Threat of liquidation of the assets.
Table 1: SWOT analysis
4

(Source: Created by author)
Analysis
OzCo had the manufacturing unit to produce the affordable size of boats. The organisation
provides better quality, preferred size, and luxury boats. The company had been managing the
cash reserve from 1960s. The traditional approach obstructs the company's profitability in the
Australian market. Simon and Gentry (2014) asserted that the traditional methods of an
organisation obstruct its opportunity from competitors to achieve the market share. The OzCo
has opportunities to explore the overseas market with new upgraded products, which might
help to penetrate in the international market and increase the wealthy customers. The
company has ample opportunity to enlarge the market outside the Australia with newly
fabricate agenda, rules, and norms. The company must upgrade the products according to the
desire of the customers. The CEO of company sieged some of the product to prevent the
reputation in front of the competitors and trying to promote the business outside Australia.
Brief discussion of Opportunities and threats
Threats
The threat which OzCo is dealing in the concerned manufacturing industry is new
government policies in Australia. As per Australian government, some old models of boats
have made illegal. As OzCo mainly focus on old models of boats. Thus, this threat is much
prevalence. Due to this reason, staffs have decided to leave their jobs as OzCo has insecure
their professional growth. Another threat that OzCo has to consider is high competition level
in Australian Boat manufacturing sector were technologically advanced companies have
decided to buy their small competitors (OzCo, 2018). It might be possible that big
competitors can by OzCo, liquidate their assets and finally close them. OzCo must devise
possible strategy to overcome these threats.
Opportunity
The company has the opportunity to explore overseas market. Tanner and Raymond (2015)
stated that in the overseas market, government policy for old boat models is less strict. The
boat models which are made illegal in Australia will be legal for next many years in other
overseas countries. Thus the concerned company has the opportunity to expand their business
in those countries. Lees-Marshment (2014) mentioned that even, in the emerging countries,
5

the people are becoming wealthy with high GDP. Thus, they can afford luxury products at
premium price (Challagalla et al. 2014). Thus, OzCo has taken these opportunities to
maintain its profitability.
Future strategically analysis based upon Ansoff’s Matrix
OzCo has an opportunity to explore the business domain outside the Australia. The
organisation had failed to explore the business web inside the Australia and the competitor
has developed competitive edge for OzCo in Australian market. Gupta et al. (2015) stated
that ansoff’s matrix help the company to analyse the market. It is about the strategy which
will be utilised by the company. Market development is expanding business in new market
with existing products. They can use another emerging overseas market for selling their
products. Nowak et al. (2015) asserted that the company can promote the business sector in
one of the overseas markets, where the burden of law & regulation are lenient and in favour
of the company. BRIC countries (Brazil, Russia, India, and China) are having newly
economic development which has high scope for market expansion. OzCo can expand their
business in the BRICS country, where the organisation will get number of customer for their
luxury boats. Debrah et al. (2016) asserted that GDP of BRIC countries is 16.58 billion U.S.
dollars, which determine that people in these countries have more money in hand to spend.
Thus, OzCo to get its range of customer in one of these countries as the customers have high
affordability of luxury boats. As the company has weak overseas market knowledge, it can
work on market research to identify its suitable market from any of these BRICs countries.
Conclusion
OzCo is a boat manufacturing organisation. In the start-up period, the organisation failed to
establish their business in Australia and all over the market. The company expresses their
willingness to explore the business regime outside Australia, where the administration rules
will in favour of the company.
Recommendations
The companies need to adopt the market development approach from Ansoff’s matrix model.
OzCo needs to upgrade their products and services according to the customers. The
organisation adopted the traditional approach at the beginning period which creates a barrier
to expand the business market. OzCo needs to update themselves with upgraded products and
6

services. The strategy of the company will be fruitful if they succeed to expand the business
in BRICS (Brazil, Russia, India, and China) country.
7

References
Books
Lees-Marshment, J., 2014. Political marketing: Principles and applications. Abingdon:
Routledge.
Tanner, J. and Raymond, M., 2015. Principles of marketing. Minnesota: University of
Minnesota Libraries Publishing.
Journals
Challagalla, G., Murtha, B.R. and Jaworski, B., 2014. Marketing doctrine: A principles-based
approach to guiding marketing decision making in firms. Journal of Marketing, 78(4), pp.4-
20.
Simon, R. and Gentry, J.W., 2014, January. Use of a Simulation in a Large Class
Environment for a Marketing Principles Class: A Qualitative Analysis of Whether Learning
Objectives Were Met. In Developments in Business Simulation and Experiential Learning:
Proceedings of the Annual ABSEL conference, 38(2), 28-68.
Online articles
Debrah, Y., Amankwah-Amoah, J. and Boso, N. eds., 2016. International Marketing
Strategies of Emerging Market Firms: Nature, Boundary Conditions, Antecedents, and
Outcomes. International Marketing Review. Available at:
https://aib.msu.edu/resources/cfp.asp?ID=28142
Gupta, A., Calfas, K.J., Marshall, S.J., Robinson, T.N., Rock, C.L., Huang, J.S., Epstein-
Corbin, M., Servetas, C., Donohue, M.C., Norman, G.J. and Raab, F., 2015. Clinical trial
management of participant recruitment, enrollment, engagement, and retention in the
SMART study using a Marketing and Information Technology (MARKIT) model.
Contemporary clinical trials, 42, pp.185-195. Available at:
https://www.sciencedirect.com/science/article/pii/S1551714415000737
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. Available at:
https://www.sciencedirect.com/science/article/pii/S0264410X15005034
Websites
OzCo, (2018), about us, Viewed on 12th August 2018
<https://www.mihnati.com/EN/company/ozco-group/about>
8

9