UGG Australia锟斤拷司战锟皆凤拷锟斤拷

UGG Australia锟斤拷司战锟皆凤拷锟斤拷
锟斤拷锟斤拷executive summary锟斤拷ugg boots have developed from australian generic products to global luxury footwear, and ugg australia has become a worldwide famous brand through the marketing strategy of celebrity seeding. the strengths of ugg australia are strict quality control, constant innovation and strict material selection. at first, ugg was only a pair of ugly boots which looked like using sheepskin with wool to wrap feet. this kind of boots was thick and stupid, but quite light and warm. by the end of the 1990s, more and more people wanted to enjoy a more casual lifestyle and ugg became the symbol of this lifestyle. ugg australia tries best to provide consumers with not only a pair of comfortable boots, but also a relaxed, casual and luxurious lifestyle (news, 2008). the fashion industry is hypercompetitive and constantly changing. that is to say, ugg australia should try its best to be different from its rivals to satisfy customers锟斤拷 changing needs or unique preferences. for this reason, differentiation is the optimal generic strategy for ugg australia锟斤拷s business in the us. carrying out differentiation strategy means that value is provided to ugg australia锟斤拷s customers through the
unique features and characteristics of uggs (roney, 2005). as a result, superior quality, fantastic design and an image of prestige or status are the bases of ugg australia锟斤拷s uniqueness.锟斤拷
锟斤拷锟斤拷keyword锟斤拷ugg australia strategic analysis business strategy choice
锟斤拷锟斤拷1 introduction
锟斤拷锟斤拷once upon a time, uggs had been awarded 锟斤拷the ugliest shoes in history锟斤拷. however, the popularity of uggs grew without the support of large-scale advertising campaigns and strong marketing promotion after deckers outdoor corporation acquired ugg holdings, inc. in the 1990s (world of ugg, 2012). ugg australia, which has kept more than 50% sales growth for several years, has become a new legend in the fashion world (deckers outdoor corporation, 2008). the evolution of ugg from a brand that made sheepskin boots to a brand that was now being touted as a symbol of a stylish, casual and luxurious lifestyle was swift. all of these achievements depend primarily on some unique strategies adopted by deckers to popularize uggs. as a result, undertaking a strategy review of ugg australia, especially in the us, is valuable.
锟斤拷锟斤拷at first, australian surfers began wearing uggs for keeping their feet warm and dry between sessions. brian smith, who is the founder of ugg australia brand, found this kind of hand-made basic sheepskin 锟斤拷footies锟斤
拷 and then sold them in the beaches of southern california. in 1998, brian smith sold ugg australia to deckers (world of ugg, 2012). after this acquisition, deckers believed that ugg australia could break the professional market and attract more consumers with its exquisite materials and comfortable foot feeling. the traditional promotion model锟斤拷advertising, appearing in fashion magazines and fashion shows, and attracting consumers to the counter锟斤拷obviously does not work for uggs because this kind of shoes, which looks ugly, stupid and is difficult to match, is hard to be accepted by the fashion world. for this reason, deckers turned to convince the other 锟斤拷lighthouse锟斤拷 in the fashion world锟斤拷superstars to fall in love with uggs. with the help of several celebrities, ugg australia has raised its popularity further and the brand has experienced steady growth over the years with the introduction of new designs and the luxury or fashion element associated with it.
锟斤拷锟斤拷2 strategic analysis
锟斤拷锟斤拷2.1 methods
锟斤拷锟斤拷this analysis mainly uses the internet sources to understand the history, the products and the marketing methods about ugg australia. especially some useful information is found on the ugg australia锟斤拷s official website. through analyzing these sources, some problems can be found, and this report will make the strategy according to the fact.
锟斤拷锟斤拷2.2 business strategy statement
锟斤拷锟斤拷mission: producing the most comfortable wool boots in the world.
锟斤拷锟斤拷vision: conveying a kind of relaxed, casual and comfortable lifestyle to consumers.
锟斤拷锟斤拷objectives:
锟斤拷锟斤拷making full use of the ugg australia锟斤拷s brand value to expand market share.
锟斤拷锟斤拷developing more products to satisfy all kinds of customers.
锟斤拷锟斤拷scope: when ugg australia occupies the us market, it should take the united states as the center and develop the international market.
锟斤拷锟斤拷2.3 external analysis
锟斤拷锟斤拷political factors: in recent years, the international political situation is lack of stability. in american market, political change has certain effect on ugg 锟斤拷s promotion, but it is not the major factor, because the trend of globalization, which brings a huge market for footwear industry, is more and more obvious.
锟斤拷锟斤拷economic factors: it is no doubt that the us is still the biggest economic power in the world. living standard of the us is in a high level and the demand for quality life is stronger (world of ugg, 2012). all these factors have a positive effect on the development of ugg australia which also has high quality standards. the development of the economy and the expansion of consumer market is the main premise to make the strategy. customers锟斤拷 consumption ability is one of the main factors when considering making the strategy.
锟斤拷锟斤拷socio-cultural factors: americans锟斤拷consumption idea translates from pursuing the good looking, the fashion style to paying more attention to a relaxed, comfortable lifestyle. the rational consumption idea which emphasizes comfort and freedom is formed in the americans 锟斤拷 mind (world of ugg, 2012). this idea also provides a
certain market for the wool boots.
锟斤拷锟斤拷technological factors: one of the main features of uggs is keeping feet cool and warm at the same time. one of ugg锟斤拷s main competitive advantages is its technical innovation. this factor is very important for ugg australia, and is the premise of formulating the differentiation strategy.
锟斤拷锟斤拷environmental factors: the important environmental factor is the 锟斤拷green锟斤拷 to the environment. ugg australia has a strong social responsibility and takes action to control the pollution when producing. in the process of manufacturing, ugg australia should make full use of the excellent technical personnel and facilities to minimize the damage to the environment.
锟斤拷锟斤拷legal factors: the us has a sound legal system, as well as in the footwear industry. when ugg australia makes generic strategy, a full consideration of the characteristics of the us锟斤拷s laws must be taken.
锟斤拷锟斤拷considering all the factors above, the differentiation strategy is the optimal generic strategy for ugg australia锟斤拷s business in the us.
锟斤拷锟斤拷2.4 strategic capability
锟斤拷锟斤拷strengths:
锟斤拷锟斤拷constant innovation
锟斤拷锟斤拷technological innovation is the main reason to make the ugg australia锟斤拷s products become distinguished. the using of high-end technology personnel to take technology innovation when producing the wool boots makes the company 锟斤拷s products more diversified.
锟斤拷锟斤拷strict material selection
锟斤拷锟斤拷many controls have been taken in material selection. ugg australia selects only the best sheepskin in the world. and after that, each sheepskin will be put through an extensive and strict process to ensure its quality.
锟斤拷锟斤拷weaknesses:
锟斤拷锟斤拷limited marketing methods
锟斤拷锟斤拷ugg australia锟斤拷s marketing methods are limited. in the future, ugg australia could use more marketing methods such as the medium to appeal more consumers. the oprah’’s tv promotion is one of the ugg marketing strategies that are very successful.
锟斤拷锟斤拷limited product scope
锟斤拷锟斤拷when talking about ugg, people only think of the wool boots. the fact is that the product scope is limited
to some extent.
锟斤拷锟斤拷opportunities:
锟斤拷锟斤拷technology development
锟斤拷锟斤拷with the development of technology, ugg australia can develop its amazing sheepskin to design and produce more wool products which can provide customers with relaxation, comfort and luxury.
锟斤拷锟斤拷shift of lifestyle
锟斤拷锟斤拷by the end of the 1990s, a cultural shift occurred锟斤拷people were embracing, and feeling empowered, by enjoying a more casual lifestyle and ugg became the symbol of this lifestyle (world of ugg, 2012). the ugg brand begins to symbolize those who embraced sport and a relaxed, active lifestyle.
锟斤拷锟斤拷threats:
锟斤拷锟斤拷consumers锟斤拷 disposable income
锟斤拷锟斤拷the consumers锟斤拷 disposable income level determines the ugg锟斤拷s product pricing and positioning. that is to say, ugg australia should determine the consumer marketing strategy according to the disposable level in a certain period.
锟斤拷锟斤拷fierce competition
锟斤拷锟斤拷in the market, the popular ugg brands include yellow earth, jomvox, mou, emu, anyprize, aukoala and so on. the competition is fierce among rivals.
锟斤拷锟斤拷2.5 strategy and culture
锟斤拷锟斤拷figure 2.5 the culture web of ugg australia 锟斤拷锟斤拷symbol:
锟斤拷锟斤拷power structures: the brand of ugg australia was founded by brain smith. and then ugg holdings, inc. was acquired by deckers outdoor corporation in the 1990s.
锟斤拷锟斤拷organizational structures: ugg australia is a symbol of the relaxed, casual, comfortable and luxurious lifestyle. that is to say, the business锟斤拷s culture there is relaxation and comfort. at the same time, the quality control there is quite strict. as a result, the organizational structure of ugg australia is formal and collaborative.
锟斤拷锟斤拷control systems: it is sheepskin that defines ugg australia. there are many controls in material selection. ugg australia selects only grade-a, most luxuries twinface sheepskin in the world and puts each sheepskin through an extensive and strict process to ensure it will provide the signature ugg experience. the control systems are so strict that even the slightest blemish will be the cause for
exclusion.
锟斤拷锟斤拷rituals and routines: the brand culture that ugg australia wants to convey to consumers is a kind of relaxed, casual and comfortable lifestyle. this brand image has existed since ugg australia founded and is not easy to change. 锟斤拷锟斤拷lou gerstner believed that culture is what people do when no one is watching (paxton, a. 2011). the business锟斤拷s culture influences its strategy development through three aspects. first of all, the business锟斤拷s culture can guide the formulation of business strategy. secondly, the business锟斤拷s culture can ensure the successful implementation of business strategy. last but not the least, business strategy must be coordinated with the business锟斤拷s culture. ugg australia’’s brand culture is providing consumers a kind of relaxed, casual and comfortable lifestyle which is quite different from the previous style. of course, differentiation is the optimal generic strategy for ugg australia锟斤拷s business in the us.
锟斤拷锟斤拷3 business strategy choice
锟斤拷锟斤拷in order to win the fierce competition and meet customers锟斤拷 changing needs, ugg australia should try its
best to be different from its competitors. as a result, differentiation is the most suitable generic strategy for ugg australia锟斤拷s business in the us. differentiation strategy does not mean that ugg australia can ignore the cost, but the cost is not the company锟斤拷s primary strategic objective. concentrating or focusing on product or service innovation and developing ugg锟斤拷s features rather than on keeping the lowest competitive price should be ugg australia锟斤拷s task. differentiation can be implemented in a number of ways through which companies can stand apart from other rivals. the product target of ugg australia is high-end, fashionable and luxurious boots. as a result, superior quality, fantastic design and an image of prestige or status are the bases of ugg australia锟斤拷s uniqueness. 锟斤拷锟斤拷at the same time, differentiation strategy allows ugg australia to match the strengths of ugg australia to the opportunities in the environment, and also to achieve a suitable competitive advantage. at first, ugg boots is the generic name for footwear. and now they are an international icon that transforms the way consumers look at boots. strict material selection and quality control are the strengths of ugg australia which can meet customers锟斤拷 needs for
high-end fashion footwear. on the other hand, just as what jeffrey klinefelte said 锟斤拷the strong demand for uggs across a broad assortment of styles is an indication that ugg is becoming a strong brand versus a hot trend in just on boot style锟斤拷 (deckers outdoor corporation, 2008). ugg australia has the rich and varied style designs which can completely meet customers锟斤拷 needs for being the most fashionable star in the fashion world.
锟斤拷锟斤拷4 conclusion
锟斤拷锟斤拷basing on the external analysis, internal analysis, and generic strategy above, it can be concluded that differentiation strategy is the optimal generic strategy for ugg australia锟斤拷s business in the us. from the external analysis above, it can be concluded that the fashion industry is a hypercompetitive and constantly changing industry. in order to meet customers锟斤拷 changing needs or unique preferences, ugg australia should have some uniqueness to have a competitive advantage. the product line should be expanded to provide customers with all kinds of styles and colors to maintain their love of the ugg collection. from the internal analysis above, this report found that ugg australia has a number of controls in material selection and
craftsmanship. these strict quality controls are also strengths of ugg australia. only through these strict quality controls can ugg australia be relaxed, casual, comfortable and luxurious footwear. in a word, differentiation strategy is the best generic strategy option for ugg australia锟斤拷s business in the us to be distinguished.
锟斤拷锟斤拷references锟斤拷
锟斤拷锟斤拷[1]deckers outdoor corporation, 2008, ugg boots: australian generic product to global luxury brand, ibs center for management research, viewed 13th january 2012, 锟斤拷锟斤拷[2]news, 2008, usa: plus award honors deckers as company of the year, , viewed 12th january 2012,
锟斤拷锟斤拷[3]paxton, a. 2011, huddles, checklists, and dale carnegie: promoting a culture of patient safety, college of american pathologists, viewed 12th january 2012,
锟斤拷锟斤拷[4]roney, m. 2005, deckers outdoor set for ugg boots boost, , viewed 12th january 2012, >。