Australian Ugg Boots: PEST Analysis for Market Entry in China

Running head: AUSTRALIAN UGG BOOTS 1
Australian Ugg Boots
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AUSTRALIAN UGG BOOTS 2
Table of Contents
Introduction
Briefly History of Australia Ugg Boots
Political factors
Economic factors
Social factors
Technological factors
References

AUSTRALIAN UGG BOOTS 3
Introduction
Australian Ugg boots began by sourcing boots from local manufacturers (Kinkhabwala,
2011). However, things changed overtime as suppliers began cutting corners, others interfered
with the selection and other suppliers moved their production facilities abroad aiming to cut the
cost of production hurting the operation of Australian UGG boot company (Australian Ugg
Boots, n.d.). In most instances, the quality and variety of raw materials was inconsistent and at
times it was not satisfactorily for the company as it failed to meet quality standards set by the
firm. So, the firm decided to establish its own premises. The company selects components that
are of the highest quality for instance natural sheepskin that is premium, quality threads and
wearing soles that are hard enough. With all these products, it is apparent the firm manufactures
best boots in terms of quality.
Brief Description of the company and the country of operation
Australian Ugg boots is a registered enterprise in Australia that specialized in providing
sheepskin boots that are purely Australian (Australian Ugg Boots, n.d.). The enterprise was
established over a decade ago and is located in Braeside in Melbourne. It is in Braeside that the
company has its manufacturing, distribution facilities and factory outlets. Australian Ugg Boots
is a proud member of associations such as the Australian Sheepskin Association Inc.
China has become an emerging economy and thus offers many market avenues for
international investments. Though China offers substantial potential for economic prosperity
yielding access to a large market and large savings with regards to labor costs, extreme care and