Target markets where incumbents are raising prices or going upmarket to find underserved segments
When established products raise prices or focus on enterprise customers, they create openings for simpler, cheaper alternatives serving the original user base. Price increases and upmarket pivots signal vulnerable moments when users actively search for alternatives. These strategic shifts by incumbents validate the market exists while creating dissatisfaction you can exploit.
When to use
When you see popular SaaS tools announcing price increases, adding complex enterprise features, or explicitly targeting larger customers. Search social platforms for '[Tool] alternative' to confirm users are actively seeking replacements.
Don't do this
Competing with incumbents at their current price point or trying to out-feature them rather than positioning as the simpler, cheaper alternative for original use cases they're abandoning.
5 Founders Who Did This
Discovered opportunity when Typeform raised pricing and found Canny opportunity when they started going upmarket. Searched Twitter, Reddit, and forums for complaints about pricing and missing features.
Web agency market was disrupted by Wix/Squarespace going from $10K custom sites to $10/month DIY, forcing pivot to mobile apps
Entered social media scheduling market because incumbents (Buffer, Hootsuite) charged $50-150/month and were going upmarket with enterprise features. Built simple affordable alternative at $9-27/month for solo creators.
Identified that DocuSign and Adobe Sign were going upmarket with enterprise features and higher prices, leaving small and mid-size businesses underserved
Targeted SMBs and startups with self-service model while incumbents Salesloft and Outreach moved upmarket to enterprise