Monday, February 9, 2009

UGG's Environment

The enviornment plays as a huge factor to any company. For UGG, their microenvironment deals with how they market their products, their suppliers, competitors, and the company themselves. I don't see UGG advertisements that often, at least not in any magazines I read, but I think UGG gets a lot of their marketing from their customers. Almost anywhere you go you'll see people wearing some form of UGG footwear. Stores that sell UGG footwear can be found in almost any mall, for example Journey's sells UGG footwear. UGG doesn't really have that many competitors, except for EMU, but I never see that many people wearing EMU footwear. The company also keeps thinking of different colors for their footwear, and are making more products. UGG's macroenvironment deals mostly with demographics, economics, and cultural. Demographics may play a big part in their marketing, or may not. Some places in the world aren't as populated, so they may not have stores there that are authorized to sell UGGs, or maybe it's a place where nobody wears UGGs regularly, for example, people in Florida may not wear UGGs because of the weather. The economic environment plays a huge role for UGGs, since they are a higher end company of footwear. Since the economy right now isn't in such great shape, less people will probably be buying UGGs, for their prices, unless it's a holiday season or a birthday. Another macro environment problem may be cultural. Some cultures may only be able to wear certain shoes, so they wouldn't try selling their products in that area. I think UGG has some advantages and disadvantages in terms of the environment. Their micro environment is generally in good terms, while their macro environment may cause some problems for the company.

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