Product Strategy
You must be thinking “What is product strategy exactly?”
Have you come across a case like “Should Lyft enter the food delivery business?” This is a product strategy case. You will rarely have enough information for one provably correct answer in a short interview. What matters is how you reach and qualify your recommendation.
Strong product strategy cases test whether you can show:
- Strategic Thinking: Your capacity to assess market opportunities, anticipate industry trends, and formulate long-term plans.
- Problem-Solving Skills: Your ability to identify and prioritize critical issues, devise innovative solutions, and address business challenges effectively.
- Decision-Making Ability: Your aptitude for making informed decisions based on data analysis, market research, and strategic considerations.
- Vision and Leadership: Your capability to inspire teams, communicate a clear vision, and mobilize resources to achieve strategic objectives.
Let’s talk about the “How”
When working through product strategy cases, it is essential to follow a structured approach so your response feels comprehensive and well thought out.
Here is a step-by-step guide that you can use to approach product strategy cases:
- Analyze the Problem: Start by breaking down the problem into its key components. Understand the underlying issues, market dynamics, and strategic implications before formulating your response.
- Develop a Framework: Establish a structured framework to guide your analysis and decision-making process. Consider factors such as market demand, competitive landscape, customer needs, and technological trends.
- Consider Multiple Perspectives: Explore different angles and perspectives when evaluating potential strategies. Anticipate potential challenges, risks, and opportunities associated with each approach.
- Prioritize Actionable Insights: Focus on identifying actionable insights and recommendations that can drive tangible business outcomes. Prioritize strategies that are feasible, scalable, and aligned with organizational goals.
- Communicate Effectively: Articulate your strategic vision, rationale, and action plan in a clear, concise manner. Use data, examples, and compelling arguments to support your recommendation.
Here is an example of a strategy case: Should Netflix get into the video game industry?
Here are some things to consider when answering this question:
- Customers: Who are Netflix's customers? What are their needs and pain points?
- Company: What is Netflix's mission and vision? What are its strengths and weaknesses?
- Competitors: Who are Netflix's competitors? How would they be affected if Netflix entered the video game industry?
- Suppliers: Who are Netflix's suppliers? How would they be affected if Netflix entered the video game industry?
- Environment: What are the trends in the video game industry? How is consumer behavior changing?
By considering all of these factors, you can come up with a well-thought-out approach to the case.
Analyzing Good vs. Great Responses
Let's examine the differences between good and great responses to product strategy cases:
Good Response: Provides a solid analysis of the problem and proposes a reasonable solution based on conventional strategies and industry best practices.
Great Response: Demonstrates exceptional insight, creativity, and strategic foresight. Offers innovative solutions, challenges conventional thinking, and considers broader implications beyond immediate business objectives.
A concise answer structure
Clarify the objective, time horizon, geography, and constraints. Explain the user need and market attractiveness, then assess company advantages, capabilities, brand permission, distribution, economics, and likely competitive response. Compare a small number of strategic options—including doing nothing—and state the risks behind each.
Finish with a clear recommendation, the assumptions it depends on, and a staged entry plan. A pilot, partnership, or narrow segment can create learning before a full commitment. Define the leading signals and guardrails you would review, plus the evidence that would make you exit or change direction.