Ed Chung, CEO of TechnologyOne, recently declined a $500 million opportunity to expand into manufacturing, citing a lack of expertise and the importance of focus. This decision serves as a springboard for understanding a key challenge in SaaS strategy: how to weigh the potential rewards of vertical expansion against its risks.
Below is a breakdown of common opportunities and pitfalls associated with vertical expansion, and the key questions SaaS companies should consider when looking at vertical expansion.
