BLOG

There's never been a better time to disrupt public SaaS incumbents.

Photo by    rawpixel    on    Unsplash

Photo by rawpixel on Unsplash

I love reading Tomasz’s blog posts on state of the SaaS market. The way he distills really powerful insights into just a couple of paragraphs is impressive. Plus he isn’t afraid to dream big and challenge others to do so too.

I wanted to share one particular post that caught my attention that my founder readers might enjoy. Check out the full post here.

Essentially, he springs up a great insight into how new founders can look at the top 23 public SaaS companies with more than $5B revenue and find ways to disrupt these incumbents.

One of the MOST OBVIOUS things that happens when a company (for ex: Salesforce) grows too big is that it turns into a slow moving giant. And naturally under-serves a very particular niche because of the size, scale and priorities.

Today, Salesforce’s market cap is $117.5B. So if you can discover a niche which is frustrated by how they are not getting the features they need, you might be onto something big. Even if you manage to take a slice of 1% of Salesforce’s market, you are a unicorn. But how and where do you start?

The playbook of disruption, that Tomasz proposes is simple, classic and old-fashioned:

1) Identify a niche customer segment

2) Determine the features that matter most to them

3) Perform a gap analysis to identify where the incumbents fall down

4) Build a product to meet that market need

The only thing I would add to this: When you actually do identify a niche customer segment, build it into a tight tribe. A close-knit community that shares a similar and uncompromising vision and taste as that of yours.

This will not only help you thoroughly vet your idea because of a better feedback loop but it will over time stand as the compelling reason for the people to switch over to your product resisting the network effects of the incumbent.

What else? What are your thoughts? What would you add to the above list?

KP2 Comments