Aura: Designing Strategy and Status in Saudi Arabia

Abstract

This case gives students the opportunity to explore the concept of organizational status as a competitive asset. CEO Noura Abdullah of Saudi furniture retailer Aura founded her company as a middle-market furniture and home goods store offering affordable yet design-savvy products. By many accounts, both tangible and intangible, Aura had been a success. By late 2014, Aura had drawn considerable attention from several high-status Saudi wedding planners and media outlets, including Harper’s Bazaar Interiors, Elle Décor, and Martha Stewart Weddings. This attention yielded unusually strong conversion rates (the percentage of visitors to the store who made a purchase). Foot traffic, on the other hand, remained unexpectedly low, leading Abdullah to wonder whether the high-status affiliations had unintentionally signaled to mid-market consumers that they would not be able to afford Aura’s products, keeping such customers away. Students will decide, along with Abdullah, how to handle this unique “problem” as Aura enters a growth phase to other Saudi and Middle Eastern markets.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

You are not authorized to view Teaching Notes. Please contact your librarian for instructor access or sign in to your existing instructor profile.

Resources

Exhibit 1: Saudi Arabia’s Young Population Profile

Figure

Source: Al Rajhi Capital, “Saudi Retail Sector,” January 5, 2013, p. 3, http://content.argaam.com/2a7e6433-a546-4a88-9c74930ed924b84c.pdf.

Exhibit 2: Rising Disposable Incomes in Saudi Arabia Lead to Higher Consumption

Figure

Source: Al Rajhi Capital, “Saudi Retail Sector,” January 5, 2013, p. 3, http://content.argaam.com/2a7e6433-a546-4a88-9c74930ed924b84c.pdf.

Exhibit 3: Aura’s Storefront and Price Tags with Both English and Arabic Lettering

Figure

Source: Aura.

Exhibit 4: Aura’s Iconic Designs Featured in Flair, June 2013

Figure

Source: Aura Complete Press Book, February 2012–August 2014.

Exhibit 5: Ethan Allen’s Facebook Pages for the Corporate Brand (top) and for the Saudi Arabian Market (bottom)

Figure

Source: Ethan Allen’s Facebook page, https://www.facebook.com/ethanallendesign (accessed November 3, 2014).

Figure

Source: Ethan Allen Saudi Arabia’s Facebook page, https://www.facebook.com/EthanAllenKSA (accessed November 3, 2014).

Exhibit 6: Harper’s Bazaar Interiors Features Aura in July 2012 and July 2014

Figure

Source: Aura Complete Press Book, February 2012–August 2014.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles