Marketing Principles: OzCo Boats Case Study

This marketing principles case study focuses on OzCo Boats and includes a SWOT analysis, Ansoff Matrix, and strategical recommendations. The study discusses the opportunities and threats for the company, including the need for product development and market expansion.

Running Head: Marketing Principles
Marketing Principles
OzCo Boats Case Study

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Table of Content
SWOT Analysis.................................................................................................................................................................. 2
Strength.......................................................................................................................................................................... 2
Weakness....................................................................................................................................................................... 3
Opportunity and Threat Analysis.............................................................................................................................. 3
Opportunities................................................................................................................................................................ 3
Threats............................................................................................................................................................................ 3
Ansoff Matrix and Strategical Recommendation................................................................................................. 4
References.......................................................................................................................................................................... 8

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SWOT Analysis
(Source: Liu & Walsh, 2018)
SWOT analysis is a micro environmental analysis which is used by plethora of
organization across the globe to assess the strength, weakness, opportunity & threat of
the organization. Strength and weakness are internal to the organization and
opportunities and threats are external to the organization (Comino & Ferretti, 2016).
Strength
 Huge experience in the family owned business, it was set up in 1961, and hence
experience of more than 50 years is a big strength of the company.
 Build high quality small traditional boats which are a big hit in the Australian
market.
 Category market leader in Australia.
 Great business opportunity and market leading position in 60’s, 70’s & 80’s.
 Strong reserves of cash.

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Weakness
 OzCo has literally no experience in overseas market, due to tremendous growth
opportunity over, the company’s lack of knowledge makes a weakness for the
company.
 Out-dated technologies being used to build the boats is no match for the newer
technology.
 No new models have been designed in the recent tie by the company.
 Decline of portfolio of products of OzCo.
 Huge employee turnover and lower morale of the employees is one of the most
significant weaknesses.
 Traditional products are being manufactured by OzCo and not in sync with the
present day demand of luxury boats.
Opportunity and Threat Analysis
This section will focus on the present opportunities in the hand of OzCo to leverage, and
the same time creating proactive strategies to minimize the threats.
Opportunities
 Tremendous growth opportunity in the overseas market, this is seen by the
growth in the number of people who are looking forward to buy luxury boats.
 Provision of plethora of trading partners in the overseas market.
 Development and proliferation of faster and newer technologies in the
ecosystem.
 In the overseas market, there is less governmental regulation on the usage of
traditional boats for a longer period of time, thus OzCo has a great opportunity
even with it its existing line of inventory.
 Growth in the economies of the emerging market.
Threats
 Australian domestic market is shrinking significantly, poses a big threat to the
company.

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 Availability of substitutes for boat is readily available.
 Out-dated technology of OzCo and development of new technologies pose a big
threat to the company as they have to rapidly update their technology in
construction of boats.
 Australian government regulation on the usage of old boats is a big threat to the
company. It is a threat not only to OzCo, but also to plethora of companies
working in the same industry.
 Bigger companies are poaching small boat manufacturers to capture the existing
market share.
SWOT analysis of OzCo proves that the company is in grave danger and has to
quickly look up to revive its business by expanding into overseas market and focus
on product and market development.
Ansoff Matrix and Strategical Recommendation

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(Source: Shaw, 2016)
Market Penetration-Market penetration according to Ansoff Matrix is when the
company wants to expand its market share in the existing market with existing product
line. In the case of OzCo, as the Australian market is highly saturated, the company has
to either come up with new product line or move to different country to increase its
market share (Yin, 2016).
Product Development-Product development is clearly the need of the hour, as it is
highly evident that OzCo’s traditional boats are not so popular in Australia. Product
development in accordance to the Ansoff Matrix is a representation of new product in
the existing market. Thus, the company has to adopt new technology and come up with
the kind of boats the customers really wants. This can be easily achieved by leveraging
the growth of technology and creating the products based on the market research which
the customer actually needs (Filippov, 2017).
Market Development-Market development in Ansoff matrix is when the company is
looking to foray into new markets with its existing product line. In case of OzCo, market
development is a great opportunity to regain the lost market share and leverage the
economies of the emerging nation. As mentioned in the case study that overseas legal
requirement are flexible for the existing product line of OzCo. The company will not
have to replace it product here and can dominate the market even with its existing line
of inventory (Grunig & Morschett, 2017).
Diversification- In diversification, new products are being developed for new markets.
This is one of the most successful strategies for a company whose market share is on a
decline in the domestic market. Overseas market has a lot of opportunity for the country
in both the emerging nation and developed economy, thus the company can easily
capitalize on the opportunity of the new market. OzCo can leverage the new technology
in this case and come up with luxury boats, yacht and other such thing. Moreover, as
mentioned in the case study that a lot of substitutes are available for boats, thus OzCo
can conduct its market research and based on the study create products for the present
day customers(Vignali, 2015).
Other recommendation

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Employee Empowerment-As mentioned in the case study, the company is going
through a very bad phase and its highly experienced employees are leaving the
company due to high uncertainty of the business organization. Plethora of employees
are joining competitors firm which is affecting the business growth sentiments of OzCo.
Thus, it is highly advised that employees are called down and spoken to clearly in
respect to the future growth plans of the company. This way, even the employees will
get to know the mission of the company and its future growth strategy, hence
reinstating the trust and faith back in the organization and doing away with the
employee turnover and lower morale of employees (Kim & Fernandez, 2017).
Focus on Technology- Technological advancement in the recent past is the major
driver of change in manufacturing of boat. OzCo has been struggling hard to update
itself with the technological advancement, thus the company has to rapidly step on the
pedestal of technology change and accommodate new designed boats for its customers.
Moreover there is a rising trend in boat customers who are looking to pay extra price
for better and technologically advanced boats (Hannigan, 2017).

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References
Liu, X. and Walsh, J., 2018. Study on the Strategies of the E-commerce Implementation in
Binchuan Grape Industry of China——Based on SWOT Quantitative Analysis
Method. Proceedings of Business and Economic Studies, 1(1).
Comino, E. and Ferretti, V., 2016. Indicators-based spatial SWOT analysis: Supporting
the strategic planning and management of complex territorial systems. Ecological
indicators, 60, pp.1104-1117.
Shaw, S., 2016. Airline marketing and management. Routledge.
Yin, N., 2016. Application of AHP-Ansoff Matrix Analysis in Business Diversification: The
case of Evergrande Group. In MATEC Web of Conferences (Vol. 44). EDP Sciences.
Filippov, D.V., 2017. Positioning of the Organization in the Target Markets Using the
Modified Three Dimensional Matrix Model on the Example of Transport Education
Market of the Republic of Sakha (Yakutia) of the Russian Federation. Advanced Science
Letters, 23(10), pp.9861-9865.
Grünig, R. and Morschett, D., 2017. General Strategic Planning as the Starting Point for
Going International for New Markets. In Developing International Strategies (pp. 57-65).
Springer, Berlin, Heidelberg.
Vignali, C., 2015. Sustainable Management; Model Building for Decision
Making. CULTUR-Revista de Cultura e Turismo, 6(3), pp.11-18.
Kim, S.Y. and Fernandez, S., 2017. Employee empowerment and turnover intention in
the US federal bureaucracy. The American Review of Public Administration, 47(1), pp.4-
22.
Hannigan, J., 2017. Toward a Sociology of Oceans. Canadian Review of Sociology/Revue
canadienne de sociologie, 54(1), pp.8-27.

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