Analysis & Interpretation
This matrix outlines growth vectors for an established B2B SaaS company. The strategies balance improving the core product for the current market with expanding into new markets and product categories.
- Product Development as the Core Engine: For a SaaS company, ‘Product Development’ (AI assistant, mobile app) is not just a growth strategy, it’s essential for survival. Continuously adding value for the existing market is key to retention and justifies pricing.
- Market Development is the Path to Scale: ‘Market Development’ strategies (internationalization, new verticals) are the primary path to exponential growth. Expanding the Total Addressable Market is crucial once a product has found a strong fit in its initial segment.
- Diversification through Acquisition: The matrix astutely identifies acquisition as a key ‘Diversification’ strategy. For a well-funded SaaS company, buying a company in an adjacent market can be faster and less risky than building a new product and go-to-market strategy from scratch.
This SaaS company has a multi-pronged growth strategy. The immediate and continuous focus must be on ‘Product Development’ to retain and upsell existing customers. The next strategic priority should be ‘Market Development’, likely starting with internationalization, as it leverages the existing product. ‘Diversification’ is a later-stage strategy for when core market growth begins to slow.