Ariika Bean Bags: A successful Egyptian Entrepreneur Capable of Regional Expansion?
Hend Mostafa:
Rania S. Hussein:
June 2016
Since its introduction in the Egyptian market in 2011, Ariika's sales have been growing. In three years the company was able to position itself in the Egyptian market and was perceived as an international company. Ariika was targeting consumers, corporate and re-sellers and was able to acquire high market share. The success of Ariika encouraged Hassan Arslan, founder and CEO of Ariika bean bags, to consider international expansion. Arslan was considering countries in the Middle East as a good starting point for international expansion as they have similar cultures and may also have similar demands. Ariika’s brand name which is derived from Arabic origins “Ariika” and that signifies comfort, is also well recognized and easily understood in the Middle East. Ariika had only one store in Egypt and a geographical expansion could surely benefit Ariika. Alternatively Arslan wanted to build on Ariika's success by developing Ariika Home that would sell hard furniture such as tables and chairs online. Having the three options in mind, Arslan was wondering which option should he start with? If he decided to go international which countries should he consider? Should he follow the same strategy developed for the Egyptian market? If he decided to expand geographically where should he open new stores? Or should he develop the new brand Ariika Home?
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