Insight: SaaS (66) Is US SaaS evolving to the Chinese Model?
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Suite Strategy implementation has started in a significant number of American SaaS organizations. Suite Strategy means that a SaaS company develops many SaaS products. Businesses like Figma and Zapier solely concentrate on a single product. These businesses are following a targeted strategy.
Many SaaS businesses have created numerous minor SaaS products that firmly implement Suite Strategy, such as Zendesk and Zoho. This corporate strategy is being adopted by more and more US businesses.
This model has been widely used in China for a long time. Around 2011, many Chinese SaaS businesses that are still in operation were founded. At that time, they had to contend with fierce competition from established Chinese software companies as well as formidable corporations like Oracle and SAP. So, there were many similar products competing on the market at that time, and no one was distinguished as a leader. Many SaaS organizations started to create a lot of little products in order to survive. The traditional software industry likewise uses this approach. In light of the situation, there are currently no product names in the Chinese SaaS market; only corporate names. Although everyone is aware of how big your company is, they don’t know the name of your product
China’s SaaS industry lacks a standout single product to gain market share. Since the majority of SaaS providers and software providers have chosen the Suite strategy to sustain revenue. They have the trait of producing whatever goods are in demand at the time. As a result, the market is overrun with numerous low-quality items, which leaves buyers dissatisfied with the Chinese SaaS industry.
The adoption of Suite Strategy in the US or other locations is actually driven by comparable factors. This method will diversify investment risks because the economic environment is not encouraging. Making 20 small items and succeeding with one or two of them is preferable to investing in a big product and losing all of your money.
Will there soon be a lot of fierce competitors in the American SaaS market as well? I would argue that it is likely. This key is influenced by the economic climate. The general market is still upbeat as long as not every business follows this approach and new businesses continue to effectively create a single product.
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