Business Strategy Case Study Analysis

The objective of this academic paper is to study the business strategy of Aura Living, a furniture brand based in Saudi Arabia and critically analyse the business case using tools such as Diamond Strategy, SWOT Analysis, Porter’s Five Forces. The endeavour is to make business strategy recommendations to Aura Living for future growth.

Aura Living

Aura is a furniture and home accessories brand that was founded by Noora Abdullah in 2014. The brand blends Middle Eastern taste with the best of global design, offering on-trend and affordable products to customers who value style and personality. The brand has a presence in the UAE, Saudi Arabia, Qatar, and Kuwait, with plans to expand to other markets in the region (Smith, N., & Meyer, A., 2015).

As outlined in the case, Aura living following the below outlined business first principles:

Market research and trend analysis: Aura Living researches and analyses Middle Eastern clients’ preferences, and expectations. The company keeps itself up-to-date on furniture and home accessory trends.

Aura Living’s creative designers and artisans create its products in-house. Modern classic, fashionable, contemporary, blended with Arabic traditions are collections that are available.

Quality and value: Aura Living uses premium materials and procedures to make its products last. The brand is competitively priced in the mid-segment market.

Aura Living focuses on delighting their customers throughout the buying journey. The brand is very active and highly followed on Instagram.

Brand recognition and loyalty: By collaborating with high-end wedding planners, Aura Living has gained prominence in premium publications and media. Its aesthetic, design, and in-store experience make it a premium brand attracting a small proportion of the luxury segment who are surprised by the mid-segment cost of the products.

The Problem Statement

Was the company’s “good problem” of high-end clientele the real problem?

Aura’s high-status image may deter potential (and intended) buyers. Aura would lose sales by losing high-end customers. Pursuing two markets would be cost prohibitive and complex.

Going mid-market might cost Aura its high-end charm and media appeal. Would it grow if it remained high-end? Expansion beyond Saudi Arabia?