Ventura Boats is a family‐owned boat building business based in Coffs Harbour, New South Wales. Operating since1961, Ventura designs and builds high quality, small- sized, luxury boats that are made...

Ventura Boats is a family‐owned boat building business based in Coffs Harbour, New South Wales. Operating since1961, Ventura designs and builds high quality, small- sized, luxury boats that are made in traditional handbuilt ways from traditional materials. Until now the business has prospered and it has built up strong reserves of cash. Ventura 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, Ventura has no experience in overseas markets. Ventura 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, Ventura has a portfolio of products in decline In the Australian market. More worryingly, much of Ventura's manufacturing technology is outdated and the CEO has told Ventura’s staff recently that ‘there is about to be Australian government legislation to restrict the use of some of our boat types.’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, Ventura will not be able to make the technology changes fast enough before their current products become ‘illegal’ in Australia. This is not just affecting Ventura: 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 Ventura in order to acquire their market share, liquidate their assets and then close them down. Because of all of this, Ventura’s employees have low morale and significant staff departures are a risk (that is, Ventura’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 Ventura’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. Assessment Information COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Code 02426B. Based on the case study information above you are to: a. Perform the SWOT analysis of Ventura Boats b. Analyse the threats and opportunities you have discovered in the SWOT analysis. c. Based on the Ansoff’s Matrix and identified threats and opportunities, suggest a strategical alternative that Ventura Boats should pursue in the future. Provide reasons for your answer and support your recommendations with credible sources of information.