Do you have a documented strategy for your SaaS company?

Is your strategy actually a strategy? Here is a summary of Michael Porter’s famous “What is Strategy” paper.


  1. Is not about operational effeciency (every company wants to be more efficient)
  2. Is not about how you are better than your competitor (every company wants to be better than its competitors)
  3. Is about how you are different (e.g. are you about cost or quality or speed?)
  4. Means making a trade off between one good thing and ANOTHER good thing (e.g. Southwest Airlines has only a 737 fleet to increase efficiency and being on time, which means it does not do long haul flights)
  5. Means choosing what NOT to do as much as what to do (e.g. we don’t do sales at Wild Apricot, we focus entirely on Inbound because of our low ACV)
  6. Is about creating a fit among your company’s activities (e.g. Ikea’s affordable furniture connects with its focus on self-assembly which connects with having inventory at each location).

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