SaaStr · 2022-06-26
· 1438d
Why SaaS Competition Becomes Ruthless: Oligopolies and Dominant Strategy Equilibrium
This article explains why competition in SaaS markets is exceptionally aggressive compared to other industries. The author attributes this to two factors: most SaaS categories naturally form oligopolies with only a few viable competitors, and the lack of interdependence between competitors enables pure dominant strategy behavior where companies aggressively pursue every market opportunity without restraint.
Metrics in this report
Minimum ARR for Efficient Scale Recognition
100,000,000$
threshold
Enterprise SaaS competitors achieving efficient scale