J Boats Case

Aigerim Magauova, ID: 986333

Polina Zvereva, ID: 990509
Natiq Kazimov, ID:06641A
Liliia Kuzmenko, ID: 984887
Aigerima Mukasheva, ID: 989104
Aibota Omarova, ID: 991978
Atakan Berkay Inan, ID: 990010
Mehlika Nur Kilci, ID: 990693
 SWOT
Strengths
1. Manufacturing structure (subcontract production with the
best boat builder and strong relationship with based on trust)
2.. Strong professional distribution network through
independent yacht dealers
3. Marketing strategy (attractive marketing price, advertising in
national sailing periodicals, supporting national boat shows)
4. Client support (feedback about new models, Class
association)
5. Implementation of innovation (introduction of several new
boats a year)
6. High product quality
7. Worldwide brand name and strong reputation
Weaknesses
1. Too innovative (fear of being copied by
competitors)
2. Financial planning (most of time goes to design
and marketing projects)
3. High prices due to new regulations of taxation
4. Long period of production due to limited resources
and complicated methods
Opportunities
1. New markets: cruising and entry-level
2. New materials and technologies which can reduce
costs of manufacturing
3. New government regulations concerning sail boats
4. Attraction of new dealers
5. Creating of brand franchise
6. Creating of additional products (for ex: yachting
equipment)
7. Product distribution in the new countries
Threats
1. New entrants in the market (innovative, high
quality firms with lower prices)
2. New pandemic
3. Selling of TPI and finding another builder
4. Inflation (reducing quantity of customers which
can afford high end boats)
5. New taxation policy
6. Increase in prices for production materials
7. Termination of contracts with dealers
 Porter's Five Forces
The threat of new entrants: Buyers:
J boat has easy to set up because it can take place in a J Boats customers are not really sensitive to price.
home garage. High investment in research and However, J Boats is currently concerned that they will have
development and product innovation required. J Boats is to compete with their own used boats in the market.
performance-guaranteed, which is costly to build, requires
time in the design planning and process.

Suppliers: Industry rivalry:

J Boats has only 1 main subcontractor which is TPI. It has a
lot of bargaining power. As the switch-cost would be quite
high since they must settle everything with their new
suppliers from the beginning, J Boats currently has no
option to switch suppliers or sources.
First of all boatbuilding industry is an industry with a small
number of players. J Boats capabilities are created by
being first at creating new designs- a “first mover” and
locking out competitors.

Substitutes:
J Boats own boats that are being sold in the used market.
J Boats managed to handle them by referencing the
customer claim directly to TPI as the builder. As J Boats
played within the niche market, it is less likely that J Boats
customers will switch to their competitor’s product.
 4 Ps of Strategy
become the best performing
Perspective brand in the recreational boat
Plan
market, family-oriented (in the
very beginning), constant
innovations, which weren't
earlier in this market.
professional dealer network ,
Position reduce manufacturing costs in
Pattern
order to keep competitive price,
organize and participate in any
events related to your niche,
stay in touch with owners, build
boats that will be in long-term
demand. Don't create and build
a boat that you would not want
to own!
1.Working with the Builder To meet demand, increase
productivity and insure the continued success and
profitability
2. Signing independent yacht dealers to stock at least
one new boat always and to market and promote the
boat in their geographical territory
focusing
3. Product Innovation to get people excited about
buying new boats and get dealers excited about selling
them
1. Introducing boats much more frequently to prevent
competitors from capitalizing on their innovations
2. Providing technical support to owners and to owner
class associations
3. Increasing the capacity by subcontracting
production to meet the whole demand.
4. Coming up with new products and new product
strategies to maintain the volume.
5. Introducing a new concept of boats based on speed,
simplicity, and low cost.