Strategic Analysis of Ugg Boots in China: Impact of Economic, Political, Socio-Cultural and Technological Change

Running head: GLOBAL BUSINESS MARKETING
Global Business Marketing
Student’s name:
Name of the University:
Author’s note:

1GLOBAL BUSINESS MARKETING
Table of Contents
Introduction......................................................................................................................................2
Background information on products of Ugg Boots........................................................................2
Background information on China as chosen country.....................................................................2
Economic environment....................................................................................................................3
Political environment.......................................................................................................................4
Socio-cultural environment.............................................................................................................5
Technological environment.............................................................................................................5
Conclusion.......................................................................................................................................6
Reference List..................................................................................................................................7

2GLOBAL BUSINESS MARKETING
Introduction
Global marketing environment has been changing rapidly and competition among
different companies has also been increasing. Therefore, the companies are trying to penetrate
different market through watching the global business scenario. As stated by Rajogo (2016), new
changes can be opportunities for the marketers and the organisation can direct use the strategy of
global marketing in order to get the benefit. In this study, Ugg Boots is the chosen company and
strategic analysis is done to show the impact of economic, political, socio-cultural and
technological change in the company. In addition, I was a marketing manager have chosen China
as a country to do the strategic analysis.
Background information on products of Ugg Boots
Ugg Boots Pty Ltd is the registered company in Australia and it is specialized in the
sheepskin boots. Ugg Boots are specially sheepskin boots and these boots were originated in
New Zealand and Australia. These types of boots are specially made of twin-faced sheepskin that
has fleece on the inside and these boots have tanner on the outer surface with the synthetic sole
(Australianuggboots.com.au, 2018). The boots makers are skilled and each pair of boots is made
from beginning to the end by one handful employee. Ugg Boots are passionate about the team
working and it keeps the great Aussie icon and it is Australian made products. Ugg Boots believe
in quality before the quantity of the materials. Ugg Boots Pty Ltd is the member of Australian
Sheepskin Association and Australian Made Campaign.
Background information on China as chosen country
According to IMF, China is the world’s largest economy in terms of Purchasing Power
Parity (PPP). China is an Asian country that shows the GDP growth with 6.9%. Current GDP of
China touched $13.3 trillion and GDP per capita is $10,300 (Day, 2016). China is considered as
the fastest growing economy in Asia and it has more than 1.5 billion people's market. China has
been experiencing the changes in the economy and business perspective. China offers
entrepreneurial economy as the companies can expand the business and it can set the global
benchmark for the prices. The labour cost is comparatively low in China and mainly with the
development of Sichuan province; China offers vivid opportunity in business.