Case Study Analysis: Marketing Principles of OzCo Boats (BUS106)

This case study analyzes the marketing challenges faced by OzCo Boats, a boat-building company founded in 1961. The analysis includes a perceptual map of customer segments, highlighting the company's position in the market. It then examines relevant industry trends, particularly the contraction of the shipbuilding industry in Australia and the increasing competition from overseas firms. A detailed SWOT analysis reveals the company's strengths, such as its industry experience and high-quality products, as well as its weaknesses, including outdated manufacturing technology and a limited market scope. The opportunities for expansion into overseas markets and the threats of shrinking domestic market and increasing competition are also discussed. The Ansoff Matrix is applied to explore strategic alternatives, such as product development, market penetration, and market extension. The study concludes with recommendations for OzCo Boats, including expanding into overseas markets, adopting modern technology, and implementing digital marketing strategies to improve its competitive position.

Running Head: MANAGEMENT 0
MARKETING PRINCIPALS

MANAGEMENT `1
Table of Contents
Introduction................................................................................................................................2
Perceptual map of Customer Segments......................................................................................2
Industry Trends..........................................................................................................................3
SWOT Analysis.........................................................................................................................4
Ansoff Matrix.............................................................................................................................6
Recommendations......................................................................................................................6
References..................................................................................................................................8

MANAGEMENT `2
Introduction
In this globalized era, technological advancement is the key by which an organisation can
achieve competitive advantage in the industry with changing its old way of production and
adoption of new technologies (Armbruster et al, 2008). This will also helps the organisation
in its future sustainability and profitability for the long run. This report outlines the related
situation of a case study describing “OzCo Boats”, a boat-building organisation founded in
1961. As per the case study, the company is facing various difficulties due to its outdated
manufacturing, tight government regulations and no experience in overseas markets.
This report attempts to state customer segments with the help of perceptual mapping, relevant
industry trends, strength and weakness in the market, strategical alternatives and necessary
recommendations.
Perceptual map of Customer Segments
High Price
InnovativeStandardized
Low Price
OzCo
Boats

MANAGEMENT `3
In relation to perceptual map of customer segment, OzCo Boats comes under the first
quadrant depicting in building standardized products with selling of boats to consumers more
than average price. The company builds high quality products in a traditional hand built ways
and despite being long run experience in the industry, the company have not adopted
technological changes fast enough. Hence, this leads to being manufacturing only
standardized products and prevent them from innovation. In addition, being using traditional
way of manufacturing, the cost of developing their products increases and thus the company
is required to sell its products at higher price (Johnson, Christensen and Kagermann, 2008).
Industry Trends
The Shipbuilding and Repair Services industry has contracted over the past five years. In this
industry, government investment now also play an important role in the issue of valuable
contracts. However, the revenue has fallen from $3.1 billion in 2013-14 to $3.0 billion in
2018-19 (ibisworld.com.au, 2019). One of the rising threat for this industry in Australia is the
increasing number of contracts that are being awarded to overseas firms, constraining
revenue growth.
The commercial shipbuilding market is generally more cost-competitive and their important
key success factors include effective quality control, high-end research and development and
provision of superior after sales service (ibisworld.com.au, 2019).

MANAGEMENT `4
SWOT Analysis
Strengths
 One of the major strength of the
company is their experience in the
industry starts in 1960.
 The company is known for its
building of high quality and
luxurious boat and it is promised to
every customer of the company.
 The financial reserve of the
organisation are based on huge
prosperity of the business and are
thus very strong.
Weakness
 The company have limited its
boundaries only to the Australia
market and thus their business
achieved low economic scale.
 Manufacturing technology adopted
by the company is now being
outdated.
 In the markets of Australia, large
range of its products are declined.
 Low retention and morale of
employee are also considered as one
of its biggest business weakness.
Opportunities
 The company have biggest
opportunity to expand into the
overseas market, as there is less
restriction for using traditional boats
considering many years to come.
 The emerging and developing
economies are present all over the
globe and there is increase in
number of clients who seek out
luxurious products in extent with
huge passion.
Threats
 The number of substitutes is
continuously rising with the
shrinking of Australia domestic
market.
 Various products of OzCo might
declared illegal by Australian
government due to its manufacturing
by outdated technology.
 Various other competitors of OzCo
are seeking to acquire companies
like OzCo to increase their domestic
market share.

MANAGEMENT `5
Analyse the threats and opportunities
Considering the above analysis, the threats facing by the company are generally associated
more to operational elements in the market. One of the threat was shrinking of Australian
domestic market and the rise of more number of substitutes. With regards to this, OzCo Boats
is one of the group market leaders, however, it does not have familiarity and expertise in
relation to the international marketplace. In majority of the countries, the overseas market is
rising rapidly. Moreover, the CEO of OzCo Boats also have reported that Australia
government may put certain barriers on manufacturing of some particular kinds of boats and
this will be one of the biggest threat for the company in the domestic market. The company
also have well experienced staff, but still not able to capture necessary technological change.
Not only OzCo but also various other traditional boat building corporations having operations
in Australia will also be getting impacted.
In addition, the current generations also look out for modern and latest technology in extent
with superior manufacturing process (Boons and Ludeke-Freund, 2013). Various big
competitors of OzCo also planning to buy the company and thus resulting in low morale to
most of the employees and thus there are little chances of improvement and thus may result in
low productivity to the company in future.
In relation with opportunities, the company may expand in the overseas market with their
traditional boats due to fewer restrictions out there. In addition, due to high growth in various
emerging economies, it will be beneficial for such traditional boat builders in relation with
the operations. There will be various rich customers also in those emerging nations who are
usually passionate about luxurious products and thus there will be high chances for these
customers in buying of traditional boats.

MANAGEMENT `6
Ansoff Matrix
In relation with the Ansoff Matrix, it can be said that OzCo might fare well if they
tend to come in product variations that they create. They also must confirm that the boats that
they develop are well aligned as per the requirement of the particular client and market trend.
Recommendations
The few recommendations that the company needs to use in order to confront the above-
stated issues are –
 The management of OzCo Boats must focus on increasing their market boundaries to
the overseas market.
 The company should adopt modern technology with the manufacturing process while
building out its product rather than relying upon traditional methods.
Product Development
It is important for the organizations to
emphasis mainly on the differences of the
product that the organisation manufacturers
in order to capture hold the concerned client.
Market Penetration
The probabilities are low for the
organisation to attain more clients in the
current market.
Market Extension
The organisation should expand their
business to overseas in order to increase the
revenue generation.
Diversification
The organisation might target at selling
new products to the new markets that they
might capture in other nation.
Products
Existing New
INCREASING RISK
INCREASING RISK
Existing
Market
New

MANAGEMENT `7
 The company needs to conduct significant training programme so that global
exporters are best adapted with the Australian corporate culture. It will benefit OzCo
to encourage intercultural interaction within the organisation and in result, it will also
benefit in communicating with global or foreign consumers.
 OzCo needs to plan for expanding its business in the emerging economies so as to
increase customer segment and attaining economy of scale. It will also save the
organisation from collapse in the prospective future due to increase in global
popularity.
 OzCo needs to adopt digital marketing and social media marketing for the purpose of
interactive promotion as it will help the organisation to get population responsive of
its presence so as to endure competitive in the industry (Tiago and Veríssimo, 2014).

MANAGEMENT `8
References
Armbruster, H., Bikfalvi, A., Kinkel, S. and Lay, G. (2008) Organizational innovation: The
challenge of measuring non-technical innovation in large-scale
surveys. Technovation, 28(10), pp.644-657.
Boons, F. and Ludeke-Freund, F. (2013) Business models for sustainable innovation: state-
of-the-art and steps towards a research agenda. Journal of Cleaner production, 45, pp.9-19.
ibisworld.com.au. (2019) Shipbuilding and Repair Services - Australia Market Research
Report [ONLINE] Available from: https://www.ibisworld.com.au/industry-trends/market-
research-reports/manufacturing/transport-equipment/shipbuilding-repair-services.html
[Accessed 10/06/2019].
Johnson, M.W., Christensen, C.M. and Kagermann, H. (2008) Reinventing your business
model. Harvard business review, 86(12), pp.57-68.
Tiago, M.T.P.M.B. and Veríssimo, J.M.C. (2014) Digital marketing and social media: Why
bother?. Business horizons, 57(6), pp.703-708.