Strengths
The purpose of this individual case study analysis is to further your skills in applying relevant marketing analysis tools. It will also test your ability to identify a range of marketing problems and
propose strategical solutions. This will enable you to apply marketing theories and concepts to a“real world” business case. Your first task is to read the following case study:
OzCo Boats is a family?owned boat building business based in Coffs Harbour, New South Wales. Operating since1961, OzCo designs and builds high quality, small- sized, luxury boats that are made in traditional hand-built ways from traditional materials. Until now the business has prospered and it has built up strong reserves of cash.
OzCo sell their boats to boat?yards and also direct to consumers in Australia. However, the Australian domestic market is shrinking and more and more substitutes are becoming available.
In contrast, there is fast market growth overseas where trading partners are available but, despite being the category market leader in Australia, OzCo has no experience in overseas markets.
OzCo has always relied on traditional methods and materials to build its boats; this was fine in the 1960s, 70s and 80s but in recent decades there has been a move to newer and more efficient technologies both in materials and manufacturing processes. With no new models for decades, OzCo has a portfolio of products in decline Inthe Australian market.
More worryingly, much of OzCo’s manufacturing technology is outdated and the CEO has told OzCo’s staff recently that ‘there is about to be Australian government legislation to restrict the use of some of our boat types.’ Despite having experienced and industry –respected staff, OzCo will not be able to make the technology changes fast enough before their current products become ‘illegal’ in Australia. This is not just affecting OzCo: other traditional boat?builders in Australia face possible ruin too.
Indeed, some of the larger and more technologically advanced boat?builders are now looking to buy out their smaller competitors such as OzCo in order to acquire their market share, liquidate their assets and then close them down.
Because of all of this, OzCo’s employees have low morale and significant staff departures are a risk (that is, OzCo’s best employees are likely to leave for other jobs if things don't improve).
On the brighter side, overseas governments place fewer restrictions on the use of traditional boats and OzCo’s current products will be legal there for many years to come.
More than this, the growing economies of emerging nations are generating wealthy consumers who have a passion for luxury products.
Strengths
In the recent era of technological advancements, companies require changing old production methods and technologies for attaining competitive edge in the market (Blockeel et al. 2016). The objective of this paper is to explain such situation with OzCo Boats case study in which SWOT and Ansoff matrix analysis will be carried out based on which certain recommendations will also be provided in dealing with the identified threats and weaknesses identified from the analysis.
SWOT analysis can serve as an effective strategic analysis technique that can facilitate OzCo Boats in realizing its strengths, weaknesses, opportunities and threats based on which the company can develop marketing strategies. Moreover, implementation of such strategies based on SWOT analysis can facilitate the company in attaining competitive edge in Australian boat manufacturing industry (Bull et al. 2016).
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Strengths
OzCo Boats have an established position in developing high quality, small sized and luxury boats in traditional hand-built ways and traditional manner.
Availability of strong cash reserves
Presence of diversified product portfolio
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Weaknesses
· No experience of OzCo Boats company in the overseas market
Outdated manufacturing technology of OzCo Boats
Due to lack of advancements in technology the company’s boats are turning out to be “illegal” in Australia
Low employee morale and high staff turnover
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Opportunities
OzCo Boats can modify its existing technology in developing their boats
Considering merger strategy for attaining high market shares in global market
Entering in market where consumers have increased passion for acquiring luxury boats
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Threats
Sudden shrink in the Australian domestic boats market
Increase in the newer and highly efficient technologies regarding materials and manufacturing process
Restriction from Australian government legislation in restricting use of some types of boat
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From carrying out the SWOT analysis it has been gathered that the organization has increased weaknesses in comparison to its strengths and there are increased treats in comparison to the weaknesses. In this scenario, it is not possible for the organization to deal with the treats in maintaining competitive advantages (Chiang, Chen and Ho 2016). The stability of the company is also observed to be at stake because of unavailability of latest technologies. To deal with the same, the company needs to consider technological advancements through adding number of features in the manufactured luxury boats in order to attract consumers. Moreover, to deal with its identified threats and weaknesses OzCo Boats Company requires selecting a market that has increased potential for business with less government restrictions (dos Santos and Fukushima 2017).
To analyze the treats and opportunities of OzCo Boats, Ansoff Matrix analysis strategy is carried out that is indicated:
- Market Penetration: This strategy is suitable for OzCo Boats for the existing consumers are always cheap and easy to attain than attaining new consumers. This encompasses offering superior quality services to the company’s existing consumers along with valuing them to carry out business over the long term (Loredana 2016).
- Product Development: This strategy encompasses introducing new developments and products in the market. This strategy is justified to be implemented by OzCo Boats as it can facilitate in utilization of maximum production ability, dealing with new entrants and sustaining reputation in the organization as an innovator in order to secure its market shares (Medarac, Vignali and Vignali 2016).
- Market Development: This strategy encompasses entering within the new markets with the existing products of OzCo Boats Company. In a situation where the existing products have the ability to attain revenue in the market, the company can implement market development strategy to position sustainable position in the foreign market. Moreover, this strategy is deemed to be advantageous for OzCo Boats for the reason that international regulations are not prohibiting the implementation of old models in the manufacturing process of the company (Medarac, Vignali and Vignali 2016).
- Diversification: This strategy is deemed to be distinct than others as it needs shifting from operating business in the current markets and products to manufacturing innovative and new ones. In such scenario, diversification can be conducted in related or certain unrelated areas. Related diversification is deemed to be suitable in case of the issues faced by OzCo Boats Company (Rudnicki and Vagner 2014)
After carrying out SWOT and Ansoff Matrix analysis for OzCo Boats certain recommendations have been provided to the company in enhancing its sustainability within the market. It is strongly recommended that the company must employ market development strategy through which it can enter the new market with existing products. In such strategy implementation, the organization might also deal with difficulties regarding the experience of carrying its business in the international market but it can be decreased through suitable training and development. OzCo Boats is also recommended to attain benefits of legislation in the foreign market and it can be ensured by the company through generating new consumer base with employing its exceptional luxurious products and traditional technology. Such strategy implementation can decrease the threat of new entrants within the existing market. This is for the reason that the organization will work in new market and can therefore attain benefits of goodwill and brand value generated in the domestic nation. In case OzCo Boats Company does not consider entering a new market then the organization is recommended to implement market penetration strategy. Through implementing this strategy and developing technical changes within the manufacturing process the organization can maintain its stability without making increased investments.
Conclusion
It was gathered from analyzing SWOT and Ansoff Matrix analysis of OzCo Boats in the paper that the organization has increased weaknesses in comparison to its strengths and there are increased treats in comparison to the weaknesses. Based on such scenario, recommendations have been provided to the company in enhancing its sustainability within the market. It is strongly recommended that the company must employ market development strategy through which it can enter the new market with existing products.
References
Blockeel, C., Drakopoulos, P., Santos-Ribeiro, S., Polyzos, N.P. and Tournaye, H., 2016. A fresh look at the freeze-all protocol: a SWOT analysis. Human reproduction, 31(3), pp.491-497.
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem Services, 17, pp.99-111.
Chiang, Y.M., Chen, W.L. and Ho, C.H., 2016. Application of analytic network process and two-dimensional matrix evaluating decision for design strategy. Computers & Industrial Engineering, 98, pp.237-245.
dos Santos, A. and Fukushima, N., 2017. Sustainable Product Service Systems Design: Tools For Strategics Analysis. MIX Sustentável, 3(4), pp.149-156.
Gürel, E. And Tat, M., 2017. Swot Analysis: A Theoretical Review. Journal of International Social Research, 10(51).
Loredana, E.M., 2016. The Use Of Ansoff Matrix In The Field Of Business. In MATEC Web of Conferences (Vol. 44, p. 01006).
Medarac, H., Vignali, G. and Vignali, C., 2016. Improving relations between business strategy and marketing tactics. International Journal of Business and Globalisation, 16(1), pp.50-65.
Rudnicki, W. and Vagner, I., 2014. Methods of strategic analysis and proposal method of measuring productivity of a company. Zeszyty Naukowe Ma?opolskiej Wy?szej Szko?y Ekonomicznej w Tarnowie, (2 (25)), pp.175-184.
