Evaluating UK Market for Australian UGG Boots: A PEST Analysis

This report provides a PEST analysis of the United Kingdom to determine the feasibility of marketing Australian Ugg Boots, focusing on the highland regions where cold weather prevails from November to March. It examines the political landscape, highlighting the stability and trade-encouraging regulations, while also acknowledging concerns about corruption and the impact of Brexit. The economic analysis covers the UK's large economy, slow GDP growth, unemployment rates, and consumer spending habits. Socially, the report emphasizes the UK's fashion-forward culture, high literacy rate, and multiculturalism, while also noting potential unrest due to diversity and migration. The technological aspect focuses on the government's support for innovation and clean technology. The conclusion suggests that the UK market presents a good opportunity for Australian Ugg Boots due to the weather conditions, fashion-conscious society, and trade regulations, though Brexit's impact needs careful consideration. Desklib offers this student assignment along with a wide array of study resources.

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

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Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Pest Analysis of UK...................................................................................................................3
2.1 Political:.................................................................................................................................3
2.2 Economic:..............................................................................................................................4
2.3 Social:....................................................................................................................................5
2.4 Technological:.......................................................................................................................6
3.0 Conclusion.................................................................................................................................7
4.0 Reference list:............................................................................................................................8

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1.0 Introduction
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

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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).
2.0 Pest Analysis of UK
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.
2.1 Political:
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

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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).
2.2 Economic:
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

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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)
2.3 Social:
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

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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).
2.4 Technological:
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).

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3.0 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.

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4.0 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