Ariika Bean Bags: A Successful Brand Capable of International Expansion?

Author(s): Rania Hussein (The American University in Cairo, Egypt)and Hend Mostafa (The American University in Cairo, Egypt)
Copyright: 2015
Pages: 21
EISBN13: 9781466684270

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Abstract

This case deals with Ariika, which produces a large variety of bean bags that have innovative designs. The company focuses on quality and aims at becoming the first branded bean bag in Egypt with high quality and reasonable prices. Over the years, Ariika was able to build a strong customer base, sell its products online, and maintain strong relationships with large retailers. The success of Ariika in the Egyptian market encouraged Attallah, the owner, to consider his next move. The key problems discussed in the case are, Should the company capitalize on possible opportunities by immediately expanding beyond Egypt? If they decide to expand abroad, how should the company strategically expand: in the two countries at the same time, sequentially one at a time, or only in one of them? Should they rely on simple exports or consider foreign direct investment?

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