Factors for startup success: Competing against global SaaS corporations

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Volume Title

School of Business | Master's thesis

Date

2024

Major/Subject

Mcode

Degree programme

Information and Service Management (ISM)

Language

en

Pages

65 + 35

Series

Abstract

The evolution of the Software as a Service (SaaS) sector has sparked significant academic and business interest, especially in global competition and startup innovation. Startups must establish strategies to compete with established multinational corporations. This thesis examines the success factors, strategic frameworks, and operational tactics SaaS startups use to excel globally. Using a systematic literature review (SLR), this research synthesizes findings from 24 scholarly articles from 2009 to 2023, following Kitchenham’s (2004) guidelines. The review covers customer success management, innovative pricing, product differentiation, marketing, organizational integration and other topics in SaaS contexts. The thesis offers a comprehensive examination of the review methodology, a detailed presentation of findings, and a critical analysis of the strategies discerned. The principal findings indicate that SaaS startups must leverage strategic agility, deep customer insights, and technological advancements to compete effectively. Key factors include identifying and serving niche markets, building strong customer relationships, adopting flexible pricing models, leveraging agility and innovation, and tailoring marketing strategies for internationalization. The study concludes that the SaaS startup sector, while vibrant and evolving, requires continuous innovation and adaptation to stay competitive. Future research should explore the impact of emerging technologies like AI and machine learning on startup success factors in the SaaS sector and empirically validate the results.

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Thesis advisor

Koskinen, Kari

Keywords

SaaS, differentiation, global, customers, success, factors, competition, strategy

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