Cooperation A Product Development Stages -Myassignmenthelp.Com

Question: Discuss About The Cooperation A Product Development Stages? Answer: Introduction Venture boat is one of the oldest organizations in private boat manufacturing industry in Australia. They are known for manufacturing small sized and luxurious boat. Moreover, they enjoy the status of market leader in Australia. However, in the recent time, they are facing barriers in operating in their existing market. This is due to the reason that, the technologies being used by them in their production process is outdated compared to their newly entrant competitors. Moreover, the recent initiation of regulations by the government regarding the banning of boat having certain designs is also reducing the marketing opportunities for them. Thus, this report will discuss about various opportunities and threats for them along with few recommendations to enhance their business performance. SWOT analysis The expertise that they are having in this business is one of their key strengths. This is due to the reason that, they have seen and evaluated the market more effectively than their competitors. Thus, they will have more idea about the requirement of the market. Due to their presence in the market for many years, they have generated a positive goodwill and reputation in the market. Thus, their brand equity is more compared to their competitors, which can be effectively leveraged. Weaknesses Outdated technologies being used by them are trailing them behind in the competition. Their competitors are using more updated and latest technologies in the market. The low level of motivation and morale of the employees is also responsible for the reduction in effectiveness. The organizational performance is getting hampered due to this reason. Opportunities The global market is having huge opportunities for them. Economy of the developing countries is growing at a rapid pace and thus the purchasing power of the customer is increasing. Thus, the market potential of Ventura boat will be huge in the developing countries. The legal regulations in the developing counties are not as strict as in Australia and thus, they will face less legal barriers in marketing and selling their products. Threats Initiation of strict rules in banning the boats of having certain designs by the government of Australia is reducing the market potentiality for them. They will have less amount of product portfolio to offer to their customers. Using of outdated technologies in the manufacturing process is hampering their effectiveness in competing with their competitors. Thus, the current requirement of the customers is not being met effectively by them. It will pose serious issue for them in near future. Analysis of opportunities for Ventura boat As discussed earlier, the global market is having huge opportunities for them. The global economy especially the economy of the developing countries is growing rapidly. Thus, it is a good opportunity for them to showcase their products in these countries (Herstad, Aslesen and Ebersberger 2014). Moreover, in the recent times, majority of the countries are being influenced by the global culture and thus culture of having private luxury boats is receiving attention in the recent years in the developing countries. Thus, entering the international market will help them to tap the growing global opportunities as well as enhancing their brand equity brand exposure. Analysis of threats The key threat being faced by Ventura boat is initiation of the strict regulations by the government of Australia regarding boats of having some certain designs. Thus, it will reduce the variation of their product portfolio. Eventually the reduction in the variation of the product portfolio will in turn reduce their competitive advantages in the market (Kumar et al. 2013). In future they will have less number of products to offer to their customers. Moreover, the taste and preference pattern of the customers is changing rapidly, which is cannot be met effectively by them due to their use of outdated technologies. Thus, the latest requirement of the customers will not be met by their products and more customers will shift for their competitors. Recommendations through Ansoffs matrix Ansoff matrix helps in determining recommendations for the business organizations in expanding their market portfolio. In the case of Ventura boat, there can be three options for them in relation to the Ansoff matrix to enhance their business portfolio in the market. The following sections will discuss about the recommended steps. The first option should be the product development. This will involve initiation of new product or variant in order to further penetrate in the existing market (Ernst, Hoyer and Rubasaamen 2013). Ventura boat can introduce boats having new design to meet the government regulations and current market taste. This will help them in penetrating further in the Australian market (Baker 2014). It will involve less cost compared to other recommended steps. This is due to the reason that they already have the expertise in manufacturing boat and thus it will be easy to introduce new variants for them. The second recommended step for them should be the market development (Titman, Wei and Xie 2013). As discussed earlier, the market potential of private boat is increasing in the developing countries with having less government regulations. Hence, they can foray in to foreign markets with their existing product portfolio (Morrissey and Udomkerdmongkol 2012). This will enhance their business potentiality. It will also help them in enhancing their global business identity and equity. The last recommended step will be the diversification. This concept will involve more cost and more market potentiality for Ventura boat (Chen et al. 2014). This is due to the reason that if they can diversify their business in any other related sectors, then their product portfolio will get diversified and they can be able to cater to more number of customers (Lien and Li 2013). It will also help them in gaining competitive advantages from the market due to the reason that they will have more business sectors to delegate their business risks rather than depending on single business line. Conclusion Thus, it can be concluded that Ventura boat is facing business challenges in the recent years in meeting the current requirement of the market. External threats such as strict government regulations are also creating barriers in their business activities. Accordingly, recommended steps are being discussed in this report and it is being expected that effective implementation of the recommended steps will help to enhance their business effectiveness. Reference Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan. Chen, Y., Jiang, Y., Wang, C. and Chung Hsu, W., 2014. How do resources and diversification strategy explain the performance consequences of internationalization?. Management Decision, 52(5), pp.897-915. Ernst, H., Hoyer, W.D. and Rbsaamen, C., 2013, May. Sales, marketing, and research-and-development cooperation across new product development stages: implications for success. American Marketing Association. Herstad, S.J., Aslesen, H.W. and Ebersberger, B., 2014. On industrial knowledge bases, commercial opportunities and global innovation network linkages. Research Policy, 43(3), pp.495-504. Kumar, V., Jones, E., Venkatesan, R. and Leone, R.P., 2013, May. Is market orientation a source of sustainable competitive advantage or simply the cost of competing?. American Marketing Association. Lien, Y.C. and Li, S., 2013. Does diversification add firm value in emerging economies? Effect of corporate governance. Journal of Business Research, 66(12), pp.2425-2430. Morrissey, O. and Udomkerdmongkol, M., 2012. Governance, private investment and foreign direct investment in developing countries. World development, 40(3), pp.437-445. Titman, S., Wei, K.J. and Xie, F., 2013. Market development and the asset growth effect: International evidence. Journal of Financial and Quantitative Analysis, 48(5), pp.1405-1432.