Case Study Analysis of OzCo Boats: Marketing Principles Assessment

This case study analyzes OzCo Boats, a family-owned boat building business facing challenges in a shrinking domestic market. The analysis utilizes SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats, highlighting the outdated technologies, lack of overseas market experience, and the threat of new entrants and substitutes. The Ansoff's Matrix is then applied, with a focus on market penetration, product development, market development, and diversification strategies. The report recommends a market development strategy, suggesting that OzCo Boats enter new markets with its existing products, capitalizing on opportunities like fewer government restrictions in overseas markets. The analysis emphasizes the importance of adapting to market changes and leveraging the company's strengths to overcome threats and capitalize on opportunities. The study concludes with the importance of strategic planning and adaptation for business success.

Running head: MARKETING PRINCIPLES
Marketing Principles

MARKETING PRINCIPLES 1
Table of Contents
Introduction:...............................................................................................................................2
SWOT Analyses:........................................................................................................................2
Strengths:................................................................................................................................2
Weaknesses:...........................................................................................................................3
Opportunities:.........................................................................................................................3
Threats:...................................................................................................................................3
Ansoff’s Matrix:.........................................................................................................................4
Market Penetration:................................................................................................................5
Product Development:............................................................................................................5
Market Development:.............................................................................................................5
Diversification:.......................................................................................................................5
Recommendations:.....................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

MARKETING PRINCIPLES 2
Introduction:
In the present scenario of technological advancements, an organization is required to change
its old methods of productions and should adopt new technologies to compete with its rivals.
If the company does do so, it can lose its markets shares and profitability in long run. This
report describes the same situation with the help of a case study of boat building company,
‘OzCo Boats’. The company is facing some difficulties due to its outdated procedures. The
report describes the strength, weaknesses, opportunities, and threats with the help of SWOT
analyses and Ansoff’s Matrix. Further, it includes some recommendations on the basis of
above analyses that can be applied by the organization to deal with such threats and
weaknesses (Russell-Bennett, et al., 2010).
SWOT Analyses:
Strengths:
High Quality of products.
Goodwill of the firm.
Luxury products.
Experienced staff.
Weaknesses:
Outdated technologies.
No experience to deal with the overseas
market.
Old models of boats.
Lack of employee’s morale.
Opportunities:
Passionate Customers about luxurious
things.
Fewer restrictions by the overseas
government.
Threats:
Legislations of the Australian
government.
New entrants
Latest technologies
New models
Availability of substitutes.
Strengths:
 The company builds and designs high-quality boat based on traditional methods
which are not possible by new technological advancements.
 The boat manufactured by the company is of luxurious in nature.

MARKETING PRINCIPLES 3
 The staff and workers of the organizations are highly skilled in using traditional
methods of building boats.
 The goodwill of the organization is high in its home city and across the country.
Weaknesses:
 OzCo’s management does not have any experience of dealing in the overseas market
across the countries.
 The company uses outdated technologies for manufacturing and designing the boats
which are not preferred
 The models of the boats are also old and are not attractive in comparison to new
technology-based models.
 The moral of the employees is decreasing due to market conditions and regulations of
Australian Government. They are about to leave the organization (Ommani, 2011).
Opportunities:
 The company has an opportunity in form of those customers who are passionate about
traditional boats and luxurious things.
 Some Legislations of overseas government support the old models of the organization
to be legal for some more years (Gurel & Tat, 2017).
Threats:
 The threat of imposing legislation by Australian government which may result in
stopping the manufacturing and trading of some boats of traditional methods.
 The new entrants are continuously using new technologies in boat building and design
which is directly affecting the sales of the company.
 There are so many substitutes available in the market which is also an increasing
threat to the organization.
 New models and technological advancements used by the rivals creating a threat of
shifting the customers towards them (Osita, et al., 2014).
From the above analyses, it is clear that the company has more weaknesses in comparison to
strengths and similarly, it has more threats in comparison to opportunities. In such situation,
it is not possible for the company to take advantages of its opportunities because existed
threats can result in negative results. The weaknesses of the company include some major
issues like backward technology and old models which requires a huge amount of money to

MARKETING PRINCIPLES 4
solve. In this critical financial position, it is not possible for the company to invest a large
amount in solving these issues.
One of the major opportunities OzCo Boats have is the passion of customers towards
traditional manufactured boats that is not easy for any new technology-based companies. The
company can use this opportunity to increase its sales and bring stability to its existence. The
company can also utilize this opportunity to promote the company as a traditional
manufacturer of boats. In this situation, there will be no need to diversify the business in
terms of product or market. Another opportunity that the company can take advantage is the
fewer restrictions by the government of other global countries and markets. It can be directly
linked to the entering into new markets by the company. If company enter into new overseas
markets with its unique capability of manufacturing traditional boats, chances of its growth
will automatically increase. For this purpose, the management of the company to select a
market has the potential for business with fewer government restrictions (Vaghely & Julien,
2010).
Above analyses shows that company is in the position that it cannot take any decision on the
basis of the only assumption because the stability of the company is in danger. Along with
opportunities, it also has some major threats which can ruin the opportunities if are not
considered. The legislation applied by Australian government may restrict the company to go
global. Another threat that is existed in the external environment of the company is the
availability of latest technologies. Technological advancements add a number of new features
that attract customers. This threat is not able to handle because the company is not in the state
to spend a large amount (Hashemi, et al., 2017).
Ansoff’s Matrix:
Existing Products New products
Market Penetration Product Development
Market Development Diversification

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Market Penetration:
This strategy is suitable for the organization as existing customers are always cheap than the
new customers. This involves provide high-quality services to the existing customers and
value them to continue business in long run.
Product Development:
This strategy includes introducing new products with development in the market. The main
reason which justifies the need for this strategy includes the utilization of maximum
production capacity, manage the new entrants, maintaining the reputation of the company as
an innovator and to protect its market share (Al-Bostanji, 2015).
Market Development:
This strategy includes entering into new potential markets with the existing products. When
existing products have the capacity to generate revenue in new markets, an organization can
use this strategy to increase its market in overseas areas. This strategy is useful for ‘OzCo
Boats’ because the overseas legislations are not prohibiting the use of old models of the
company (AJ, 2015).
Diversification:
This strategy is different from others as it includes moves out from its current markets and
products to the new one. Diversification may be done in related or unrelated areas. Related
diversification may be in the form of horizontal, backward or forward integration (Navarra &
Scaini, 2016).
Recommendations:
After analyzing weaknesses, strengths, threats, and opportunities by using SWOT analysis
and studying the strategies by Ansoff’s Matrix, it can strongly recommend that the company
should use market development strategy mentioned in Ansoff’s Matrix. According to this
strategy, the company enters into new markets with its existing product. For such purpose,
the company may face difficulties regarding the experience of doing business in the overseas
market but it can be minimized through proper training and development (Lu, 2010). The
company can enjoy the benefits of legislation of overseas government. It can create new
customer base with its unique traditional technology and luxurious products. This strategy
can eliminate the threats of new entrants in existing market because the company itself is
going to work in a new market and it may enjoy the privileges of its goodwill and brand value

MARKETING PRINCIPLES 6
which it has created in its home country. Once the company and its products are being
accepted by the new market, then it further may go for adopting new and innovative
strategies like product development, market penetration etc (Kipley, et al., 2010).
If the company does not want to enter the new market then it is recommended that the
company should follow market penetration strategy. Although it would not be easy for the
company to operate successfully in comparison to its previous profitability and performance.
But it can save its business and stability without making much investment only through this
strategy. In this strategy, the company can adopt some technical changes in its manufacturing
process so that the products can be more attractive and meet the requirements of the modern
customers.
Conclusion:
On the basis of above report, it can be concluded that in order to deal with organizational
threats and weaknesses and to take the advantage of opportunities, an organization should
carefully analyze all strengths and opportunities related to the business. Above analysis
shows that ‘OzCo Sports’ is having threats more than opportunities in its environment but it
also have some unique strengths that can be used to take advantages of presented
opportunities.

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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,
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of International Social Research, 10(51), pp. 994-1006.
Hashemi, S. M., Samani, F. S. & Shahbazi , V., 2017. Strengths, Weaknesses, Opportunities
and Threats (SWOT) Analysis and Strategic Planning for Iranian Language Institutions
Development. Journal of Applied Linguistics and Language Research, 4(2), pp. 139-149.
Kipley, D., Lewis, A. O. & Jeng, J.-L., 2010. Extending Ansoff’s Strategic Diagnosis Model:
Defining the Optimal Strategic Performance Positioning Matrix. SAGE Open, 2(1), pp. 1-14.
Lu, W., 2010. Improved SWOT approach for conducting strategic planning in the
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1317-1328.
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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.
Osita, I. C., R., I. O. & Justina, N., 2014. Organization’s stability and productivity: the role of
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Journal of Innovative and Applied Research, 2(9), pp. 23-32.
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.

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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.