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Which approach is more likely to succeed in SaaS?
1. Creating a product that already exists in the market but with a unique differentiator.
2. Identifying a new problem and create a market for it from scratch.
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Mugur Neacsu
Hi Azfar, in my opinion, if you are able to identify a new problem and offer a solution, you are a winner, even you still need a lot of marketing.
But if you create a product that already exist and you offer a differentiator, you go on a clear path where you can anticipate a little your market, and you can target your product.
I think there is always room for innovations and improvements.
I would go for number one.
Good luck,
Mugur
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Tough question. But I think a mix of both, where the market is not that saturate and not too old.
First one definitely has a validated market and validated products which you can use for your advantage as a late comer.
I'd choose the first option. Because you already have competitors out there, they've done most of the hard work for you: validating the problem, getting customers to pay and maybe even raising funding. You can still pursue this with a few more features and a much more nuanced approach to it. But this won't work for all companies and all industries.
It ultimately boils down to your capacity to innovate. And innovate, no matter how small or big it may be.
1 is low-risk low-return. Your business model is already proven, you'll most probably find customers, even if they'll be in smaller numbers as compared to 2, because you'll have many direct competitors.
2 is high-risk high-return. The market may not even be aware that the problem you are solving is a thing, so you'll have to educate the market. But if the market takes off then you'll be ideally positioned.