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Scalable Pricing Strategies for Software-as-a-Service (SaaS) Companies in International Markets: Balancing Growth and Profitability
University West, School of Business, Economics and IT.
University West, School of Business, Economics and IT.
2025 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Software-as-a-Service (SaaS) companies face a significant challenge when expanding internationally: devising pricing strategies that effectively balance scalable growth with sustained profitability amidst diverse market complexities. Current research often lacks integrated, actionable insights for practitioners.

This study aims to address this gap by investigating how SaaS firms develop and implement such pricing strategies in international markets and also investigates the main pricing challenges that SaaS companies encounter in internationalization. Employing a qualitative research methodology, this thesis utilizes an in-depth case study of CtrlPrint, a niche B2B SaaS provider specializing in collaborative corporate reporting solutions.

Data was collected through semi-structured interviews with key personnel at CtrlPrint, supplemented by a comprehensive review of academic literature and industry reports, and analyzed using thematic analysis.

The findings reveal that hybrid pricing models which integrates tiered, usage-based, and modular add-on components are particularly effective. These models allow SaaS companies to align pricing with customer value and usage, thereby enabling scalable revenue and enhancing profitability. The study highlights that a strategic focus on client quality, value-based selling, and professional onboarding, rather than solely pursuing rapid user acquisition, can lead to high customer lifetime value, strong upselling opportunities, and low churn, especially in specialized B2B contexts. Key international pricing challenges identified include navigating varied compliance requirements, establishing brand trust, and adapting pricing to local usage patterns without undue complexity.

The research concludes that scalable, profitable growth in international SaaS markets can be achieved through deliberate, value-driven pricing strategies tailored to client needs, and that pricing should be regarded as a core strategic tool for long-term engagement and financial sustainability. This study offers practical insights for SaaS companies seeking to optimize their international pricing strategies for balanced growth and profitability.

Place, publisher, year, edition, pages
2025. , p. 48
Keywords [en]
SaaS Pricing, International Markets, Scalability, Profitability, Hybrid Pricing Models, Value- Based Pricing, B2B SaaS, Case Study
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hv:diva-23892Local ID: EXD951OAI: oai:DiVA.org:hv-23892DiVA, id: diva2:1989190
Subject / course
Business administration
Educational program
Internationellt företagande, magisterprogram i företagsekonomi
Supervisors
Examiners
Available from: 2025-08-29 Created: 2025-08-15 Last updated: 2025-09-30Bibliographically approved

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CiteExportLink to record
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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
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  • asciidoc
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