About Australian Ugg Boots Pty Ltd
Question:
Discuss about the Global Business Marketing for Pest Analysis.
Boots both for men and women are a staple during the winters, they not only keep a person comfortable and cosy during the chilly days they also help an individual make a fashion statement. Boots come in various shapes size and colour to fit the purpose and the personality of the owner. Sheepskin boots are used to protect form cold season from a very long time. There have been traces in ancient history where people have been discovered using these kind of shoes to keep them from the harsh cold climate. The wool lining inside the boots keep the feet warm. Australian Ugg Boots Pty Ltd is an organisation that makes genuine Australian made sheepskin boots. The company was established in 2006, and is a footwear manufacturing company. Apart from boots they also make scuffs and slippers (Aaustralianuggboots.com.au, 2018). The company caters to a wide demography of target market as they have shoes for kids as well as for men and women. The company is not only responsible for the manufacturing functions but is also responsible for administration, distribution and retail. The company also has a website presence as well where the company lists its products and also customizes products for the customers. The products that the organisation manufactured is specialized in hand crafted skills. Authoritative bodies like Australian Made and Australian Sheepskin Association support the organisation to uphold their quality assurance. It not only guarantees the authenticity but also supports the claims of the organisation of being made in Australia. The Australian Sheepskin Association regularly monitors the operation of the business thus supporting the authenticity of the brand (Aaustralianuggboots.com.au, 2018).
As the boots are specially made of cold weather conditions, this assignment will focus on marketing the product to United Kingdom. The highland areas of the United Kingdom comprises of the mountainous regions of northern England, Northern Ireland, North Wales and Scotland. The winter period begins from November and continues to chill the land till March, temperature during this time is as low as approx -10 degree Celsius. Thus making the marketing of UGG boots perfect for the target market of the company as there is utility for the products in these regions of the United Kingdom. The weather conditions and the preference of the people make UK land of opportunities for an organisation like Australian Ugg Boots. Following is a pest analysis of UK which will clarify the opportunity the company has in successfully establishing the brand (Cia.gov, 2018).
Following is the discussion of the external business environment factors that impact positively or negatively on the operations of the business. This analysis will determine how favourable the external circumstances of a country are on the product or service. Australian Ugg Boots are identified as a prospect as the weather conditions are favorable for the product and there is also a considerable amount of demand for similar products in the market. United Kingdom is a joint nation comprised England, Wales, Scotland and Northern Ireland.
Opportunities in the UK Market
The parliamentary system of the country is governed by the constitutional monarchy; which is the major highlight of the country. Until recently the country was under the authority of the European Union, the country declared its exit from the alliance in 2016. The political scenario of the country is stable and is governed with trade encouraging rules and regulations which make it easy for business operations within as well as in the international arena. The government offers opportunity for new business ventures as well. The government is always looking forwards to help the people in the country towards success and progress, thus encouraging trade and investment in the economy. The administration of the government is divided in two sections one of the central or national segment and the other is local. On the other hand, the country has faced severe criticism for corruption in the government positions and also uncertainty of the impact that the Brexit will cause on the business front. The country also has good ties with Australian government therefore the company can easily use the facilities in order to explore the UK market. However, after the completion of the procedure of Brexit gives the UK opportunity to remove some of the barriers to trade, largely benefit consumers and organisations like Australia UGG in the process (Cia.gov, 2018).
The economy of UK is one of the largest in the international market and is also expected to grow further after the exit from the European Union. Though the country has been through economic downfall like economic crisis in 2008-09 and again by the Euro zone crisis but has gained momentum in the recent times. Since there is still uncertainty in the economy regarding the Brexit decision, private consumption growth and fixed investment is forecasted to remain slow in 2018 (Ig.ft.com, 2018). The GDP of the economy is on a slow growth trend allowing the country to make decisions and formulate regulations for favourable business as well as cultural relations with countries like Australia. The FDI has been growing, but the growth of GDP has reduced as explained above (Pwc.co.uk, 2018). Unemployment rate in the country stands at approximately 4.3% and is on a rising trend which is one of the major concerns for the government. Consumers spending are adding to the economy on a large scale and therefore this makes it a place of opportunity for the company. Thus it can be said that the economy of the country though being under the scrutiny of the uncertain outcome of Brexit will have positive outcomes for the market of UGG boots. The large amount of population in the country is also a favourable aspect of the economy which can lead to a successful venture for the company. The private sector has a significant position in the market thus giving the company ample of opportunities in the market to launch their products (Pwc.co.uk, 2018).
Figure: consumer spending in UK
Source: (Pwc.co.uk, 2018)
The population growth rate of UK is 0.8 percent and the people of the country are not only known for the concept of creating social etiquettes but also are a fashion Epicentre. London Fashion Week is one of the most influential fashion events in the world, which makes the country fashion forwards and stylish. The society is characterised by multi-culturalism, high standard of living, progressive lifestyle, which has been the aspiration of the general fashion which has led to an haute couture in the society. People have a knack of adapting to the new ways and fashion along with the traditional methods (Gupta, 2013). The literacy rate of the country is also high thus, making this society also a favourable condition for companies to market their product. People in United Kingdom use boots as a part of their lifestyle during the winters. There are a number of companies the sell hand crafted boots in the country as well. The government of the country provide many free services to the public in order to maintain a good standard of living. The country is densely populated and has no dearth of skilled labours. Therefore, it can be summarised that the country has opportunity to market the sheepskin boots in the country as the people will understand the value of the product in terms of the price as well as find utility in the daily lives during the winter season. Some of the negative aspects of the society of UK are the unrest in the country due to diversity and migration (Kolios & Read, 2013).
Innovation and technology is encouraged by the government of the country thus technology is one of the major focuses of the country in terms of growth and development. The country has a large base of science and information technology boost. Some of the most innovative organisations are located and thrive in the UK environment (Gupta, 2013). The government has also been helpful in the direction of technological improvement in the country and is now focusing on environment friendly clean technology. The country has been observing a good balance in between public and private funding. The government as well as the private sector in the country invests in technology making it encouraging. United Kingdom has a well managed development funds and uses it widely in developing their country’s technology (Kolios & Read, 2013).
Conclusion
It can be concluded from the above discussion that the handcrafted sheepskin Australian Ugg Boots have a good opportunity in the United Kingdom Market. First of all the weather conditions of the country is cold which is appropriate to use these boots, they are not only used as essentials during the winter but due to the color addition and the latest styles that are offered by the brand it also helps in making a fashion statement in the fashion forward society. The target market of the company fits perfectly to the demographics and the societal aspect of UK which is further accompanied by the trade and commerce regulations in the country. Brexit should be taken as both positive as well as negative as far the relationship with Australia is concerned as of now nothing can be sure of. Thus, it can be summarized that the company has a good opportunity of investment in the UK.
Reference list:
Australianuggboots.com.au. (2018). About us. australianuggboots.com.au. Retrieved 14 April 2018, from https://www.australianuggboots.com.au/en-au/company/about-us
Cia.gov. (2018). EUROPE :: UNITED KINGDOM. cia.gov. Retrieved 14 April 2018, from https://www.cia.gov/library/publications/the-world-factbook/geos/print_uk.html
Gupta, A. (2013). Environmental and pest analysis: An approach to external business environment. Merit Research Journal of Art, Social Science and Humanities, 1(2), 13-17.
Ig.ft.com. (2018). The UK economy at a glance. ig.ft.com. Retrieved 14 April 2018, from https://ig.ft.com/sites/numbers/economies/uk
Kolios, A., & Read, G. (2013). A political, economic, social, technology, legal and environmental (PESTLE) approach for risk identification of the tidal industry in the United Kingdom. Energies, 6(10), 5023-5045.
Pwc.co.uk. (2018). UK Economic Outlook. pwc.co.uk. Retrieved 14 April 2018, from https://www.pwc.co.uk/services/economics-policy/insights/uk-economic-outlook.html
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
