Management and Administrative Sciences

Ventura Boats have proved their worthiness in the Australian boating industry in the 60s, 70s and 80s. They manufacture luxury boats that are high in quality and designs. They use traditional materials and construct boats in a traditional manner. The strategy, which the company had adopted, has benefitted their business in few past decades. They even made huge cash. Their customers are boat-yards and common people.

They have prospered for a long time span in the boat building industry. They made huge cash as well; however, they are now suffering with the very same strategies that yield them huge successes in 60s, 70s and 80s. Many reasons are there behind such stage. Outdated technology is one of those reasons that have kept them aside from the enhanced market competition. The Australian boat industry has many large boat manufacturers, which use high technologies in terms of both manufacturing processes and materials. Overseas business experience is another challenge, which has restricted their probable growth. They have never explored their strategy in some emerging economies. Outdated business model is another worry that has pushed them towards declination.

Few overseas markets have greater potentiality for luxury boats. Additionally, there are many trading partners as well. The government rules and regulations in such countries are strict as well. The incrementing economies of developing countries have generated wealthy consumers who are passionate for luxury products.

The threats are many to the Ventura Boats. The outdated technology of their manufacturing is a challenge to the company, which is threatening the future of the company. The Australian government is about to ban some of the boat types of the company, which mean a loss of business and a reduced profits. Domestic market in Australia is shrinking and is also giving place to many substitutes. Technologically established companies are in hunt of taking advantage of the declaration made by the Australian government. They are looking to buy the small sized companies such as Ventura Boats to get their shares and enhance the market dominion. The current situation has also threatened the staying of significant staffs of the company.

Threats and Opportunities Analysis

Threats are many, which have kept the sustenance of boat building companies such as Ventura Boats in high doubts. The first and foremost threat is the outdated technology, which is of less worth to the Ventura Boats Company. The strategy, which once served their purpose in few of the past decades, has now fall flatten. Additionally, some of their boat types have now come under the inspection of local government in Australia. They are now about to ban the some of the identified boat types. Another major threat to the company is its unconnected relations with the overseas business. They have little or no idea about the overseas business. The announcement of the Australian local government has encouraged some giant boat manufacturers to acquire the shares of small sized companies such as Ventura Boats. They are looking to capitalise on the provided opportunity to expand their business by acquiring the shares of small boat manufacturers. It is also certain that if this situation persists, Ventura Boats might lose its some valuable employees. It can be summarised that the entire past glories have now merged with the entire existing challenges. The future business of the company would now depend heavily on their future strategies.

Some opportunities are also there, which can provide solutions to Ventura Boats in such a dreadful situation. One of such opportunities is the overseas business, which can prove to be a worthy option for the company. Low competition in foreign market is one of those opportunities, which would provide the company a good space to accommodate. Additionally, the local government rules & policies are not that strict in overseas locations. In some emerging economies, consumers have high capabilities to spend much on their desired thing. This would be an excellent opportunity for Ventura Boats as they have better opportunities to grab the attention of mass people towards its luxurious traditional boats. However, all the opportunities would only pay if Ventura Boats has enough understanding of the overseas business or they have better strategies to capitalise on the generated opportunities.

Recommendations

Ansoff’s Matrix is very helpful in analysing the potential option for an existing business. According to the Ansoff’s Matrix, Ventura Boats should look for market development, which means entering into new market with the same product line. Based on the identified threats and opportunities, following are some recommendations for the company:

• Ventura Boats should communicate the market development plan to their significant employees. New markets entry would lift up their interest in the company, which might save the company from losing their significant employees. An extensive communication is very much required to keep its employees away from any negative frame of mind (Downs and Adrian 2012).
• The company should hire a marketing consultant to gather all the required strategies, which would help the company enter the overseas market. It is very necessary to gather information on external environment of the target country as this would help Ventura Boats prepare their strategies for the target country (Meissner 2012).
• Ventura Boats needs to analyse its internal business environment to check the feasibility of their resources and capabilities with the international business environment. This is indeed very important, as it is hard to attain a success in international locations without knowing the organisation’s capabilities. This would be a loss of huge investment, which would be incurred during international operation (Fleisher and Bensoussan 2015).
• They need to target the emerging economies. People in such countries have high capabilities of spending on different resources of leisure. Luxury boats are one of the manor resources of leisure. Emerging economies would be highly profitable for Ventura Boats. This would provide a potential market for the company where it would have comparatively reduced restrictions of the local government (Cavusgil, Ghauri and Akcal 2012).

References

Cavusgil, S.T., Ghauri, P.N. and Akcal, A.A., 2012. Doing business in emerging markets. Sage.

Downs, C.W. and Adrian, A.D., 2012. Assessing organizational communication: Strategic communication audits. Guilford Press.

Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective application of new and classic methods. FT Press.

Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., 2013. ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), pp.196-206.

Meissner, H.G., 2012. Strategic international marketing. Springer Science & Business Media.