Why do software companies fail?

24.12.19 06:50 AM Comment(s) By alokjasmatiya99

software companies failure

When a company fails, it becomes a problem to all the shareholders, investors and employees of an organization. This situation occurs because of lack of alignment of the company with its internal and external environment.


Mostly companies do the biggest mistake of concentrating on various segments at once . They avoid segmenting the market and don’t focus on one or two main segments in the beginning. It becomes the biggest reason of collapse because of lack of manpower.


Generally businesses especially Saas companies think that it is easy to get a customer. This can be true for the initial customers but after some time, it becomes difficult for a company to get customers in compare to life-time value of customers. 


A software product can take months of cost and investment of company. Customers can impose more time to learn the software and this increases the implementation cost of a software. This is not in favour of software development company. 


If a Saas company is new in the market, it should be more careful. It should concentrate on more minus down of errors in their software product. Always remember that your competitors can see your success and definitely cover that very soon.



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