International Marketing Management for Australian Ugg Boots in China

International Marketing Management
International Marketing Management
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International Marketing Management
Introduction
Joining the global market is something that ought to be planned and strategized beforehand
because it is a move that is usually accompanied by several steps. One fact that needs to be
acknowledged is that any business, whether small or big, can enter the global market and
succeed. All that determines the success of a business that has entered the global market is
how prepared the entrepreneur was at the time of entering the market. Now, joining a global
market is usually accompanied me a couple of events. For instance, you need to know the
type of the commodity you want to introduce into the target country. Here, an entrepreneur
has to determine all the possibilities of the product doing well in the proposed country. One
of the primary factors influencing the success of the introduction of a product to another
country is whether or not the social patterns and believes of residents of that particular
country support consumption of that product. Other factors are the political, economic and
technological environments of the country that the entrepreneur proposes to extend the
business too. The internal business environment also determines the success of taking a
business to the global level. The business must determine whether it is capable of producing
products enough for both domestic and foreign market. The business should also be in a
position to comply with all legal requirements associated with the business. Overall, there are
several capabilities that a business must exhibit to be in a position to go global. This paper is
aimed at selecting an Australian company from where a product will be selected to be taken
to the international market. The company that was chosen in this case is the Australian Ugg
Boots whose product is to be taken to the Chinese market.
Overview of the product
Ugg Boots is an Australian both gender footwear that is made from sheepskins by an
Australian company called Australian Ugg Boots Pty Company. During the initial days, this

International Marketing Management
product’s retailers got them from some manufacturers and later sold them directly to
customers (Meyer, 2015). However, the business became hard after some time since these
manufacturers began reducing selections and stocking substandard products that made the
sellers lose the trust they had gained from their customers. For the first time, that made the
sellers have no other choice but accept the low-quality Boots since there was no a variety
from where they could choose. However, these sellers reached a point where they felt that it
had become the best time to reclaim their quality as well as innovation without giving up. It is
therefore during this time that the company evolved into a fully operating and functional
entity. The company believes in the selection of the highest quality components like natural
sheepskins, threads, hard wearing soles among others.
The PEST analysis of China
China, also known as the people’s republic of China is located in East Asia and “it covers
960, 000 square kilometers" and it is one of the modern emerging economies in the world
with India, Russia, among others. Its biggest city is Shanghai but its capital city is Beijing.
China is believed to be the most populous country in the world “with a population of 1.404
billion people.” The country is also believed to be the origin of several products that are
associated with the modern world. Some of these products include credit banking, paper,
money, compass, gunpowder, among others. The country is now undergoing what is known
as the second industrial revolution which arose after the rigid communist rule was abandoned.
The country is now regarded as having the fastest growing economy. The expected success
with the launch of the product can be best determined by the use of the PEST analysis tool
that looks at the political, economic, social and cultural environment (Delios, 2017). Carrying
out the analysis with this tool will help the entrepreneur in making the necessary decisions as
to when and where specifically to locate the business depending on the likelihood of the

International Marketing Management
products doing well in that economy. The pest analysis of the targeted country which is China
is carried out below.
The political environment
Political factors significant influence on international marketing and this explains the reason
as to why it is very critical to determine the political environment of the targeted country
before the real act of marketing. Marketing managers are obliged to carrying out thorough
research before any global investment is made failure to which the proposed marketing will
be prone to failure (Bonaccorsi, 2016). Some countries like Thailand embrace strict trading
policies and bureaucratic procedures in foreign investment. This fact scares away many
entrepreneurs who are willing and equally able to make investments in the county. Contrary
to Thailand practice, China is regarded as one of the worlds that give much attention and
support to international trade (Richard, 2016). That gives assurance that the proposed
business will maneuver up well. Again, the country enjoys a stable political environment
which ensures that there is sufficient labor force and good infrastructure hence making China
one of the most preferable grounds for direct foreign investment. That is evident from a
research that showed that the country “attracted a record of $ 139 billion of direct foreign
investment in the year 2016” (Buckley, 2015) This fact has made China qualify to be the
world's third leading foreign direct investment destination. China is also a known to be a
“dominant overseas investor” whose having invested in several foreign countries. Some of
the countries that its foreign direct investment has reached are “the United States, the UK,
Australia, Pakistan, Bangladesh, Indonesia, the United Arab Emirates, Venezuela, Argentina,
Angola, Chad, Niger, among others” (Miller, 2016). The bottom line is that China is one of
the world’s countries that enjoy good political stability. The effect of political stability is
having the country as one of the best countries that entrepreneurs can consider when