To provide a new comprehensive penetration strategy for Tabby aside from entering the airline industry, it seems reasonable to give a relevant background. Tabby is integrating with retailers to provide clients with the opportunity to shop in online and physical stores with interest-free offers that may be named the “buy-now-pay-later” approach (Redsea, n.d.). The launch was relatively slow because it happened at the same time as the pandemic started (Kene-Okafor, 2021). However, this situation turned out to be the organization’s biggest profit as merchants and clients began to utilize its online platforms. The surge in penetration is one of the prerequisites for why the company’s transaction volume has increased 20-fold since its launch. According to the firm’s report, there are more than 400,000 active users, with approximately 3,000 installations daily (Kene-Okafor, 2021). Moreover, about 2,000 recognized brands and SMEs – like Adidas, Nike, and IKEA – are cooperating with this platform.
The above facts make it possible to suggest several significant options for Tabby in terms of its new penetration strategy. Given the fact that the company has already gained a great reputation and cooperates with the mentioned global brands, it can penetrate saturated and highly-competitive markets. This might impose several risks and additional expenses, but the outcome can benefit Tabby to a great extent. Hence, it would be rational to point out the mentioned markets in the UAE and Saudi Arabia. There are pieces of evidence that show that the smartphone industry in the region is developed, saturated, and thus appropriate for Tabby (IDC, 2021). At this point, potential partners should be identified to justify specific strategic steps.
The customer base in the two countries in which Tabby operates demonstrates considerable loyalty to the brands Samsung and Huawei. It should be noted that in the MENA region, in 2018, the market share of the selected smartphone brands was 25% and 11%, accordingly (Statista, 2021). Such a state of affairs suggests that Samsung and Huawei can be considered great retailers for the company’s online platforms. These two giants are surely aware of Tabby’s achievements and popularity in the UAE and Saudi Arabia, and potential cooperation can enhance their position in the market. Each party in this strategic move possesses the necessary resources to promote such a deal and lure many new clients. Moreover, Tabby already has experience in cooperating with technological brands – such as Cazasouq and PCD (Tabby, 2021). The provided facts seem to be a good foundation for a productive, profitable, and long-standing partnership.
However, it should be admitted that such big players will not agree to provide the “buy-now-pay-later” offer in terms of its leading smartphones on an interest-free basis. A possible solution here would be to provide Tabby’s customers with the opportunity to purchase the gadgets of Samsung and Huawei with 4% cashback. After the companies see the increased profits and benefits from this step, they can propose these non-leading gadgets in the “buy-now-pay-later” framework. Then, if this shift remains beneficial, Samsung and Huawei can place their top smartphones following the latter approach. Tabby can significantly diversify its product portfolio and enlarge its customer base to a great degree. In the future, given such recognized partners, Tabby can expand its services towards the whole MENA region (PYMNS, 2021). The described penetration strategy seems to fit the company’s goals and aspirations.
References
IDC. (2021). Gulf region’s smartphone market kicks off 2021 with rapid growth. Web.
Kene-Okafor, T. (2021). Dubai-based buy now, pay later platform tabby raises $50M at $300M valuation. Web.
PYMNS. (2021). Tabby remains independent amid increasing consolidation in MENA BNPL space. Web.
Redsea. (n.d.). Tabby – buy now, pay later. Web.
Statista. (2021). Market share of selected smartphone brands based on shipments in the Middle East and Africa in 2018. Web.
Tabby. (2021). Tabby’s homepage. Web.