Reference no: EM133210452
Assignment:
ABYAT
The APYAT approach remains one of the best recent examples of what hybrid strategy actually means and offers an explanation for why it is so hard to imitate. But it takes a significant management effort to maintain the risks that lead to a "stuck in the middle" situation - and this may be the case particularly in China.
APYAT is a Kuwaiti multinational company that designs and sells ready-to-assemble furniture, kitchen utensils, home accessories and many other useful goods and household services. Founded in Kuwait, APYAT has been the world's largest furniture retailer since 2014.
The group is known for its modern designs of various types of appliances and furniture, and its work is often associated with the simplicity of eco-friendly interior design. In addition, the company is known for its attention to cost control, operating details, and continuous product development which has allowed it to reduce its prices by between 2 and 3 percent. As of June 2021 it is worth noting that there are 378 APYAT stores in 20 countries.
Please answer the following questions:
1. Determine how APYAT achieved cost leadership? Please explain in detail.
2. Determine how APYAT will differentiate itself from its competitors? Please explain in detail.
3. Explain how APYAT is trying to ensure that its 'hybrid' strategy remains sustainable and does not become 'stuck in the middle'? Please explain in detail.
4. Can you give an example of a company similar to APYAT? Please explain in detail.