Defining the Product Strategy
Defining the product strategy involves setting a high-level plan that outlines the approach the product team will take to achieve the product vision and business goals. It encompasses decisions about target markets, competitive positioning, value proposition, and key features or capabilities of the product.
Purpose
The purpose of the product strategy is to guide the development and marketing of the product by establishing clear priorities, goals, and actions that align with the broader business objectives and the product vision. It serves as a roadmap for achieving long-term success.
- Direction: Provides a clear path for product development, helping teams to focus on what’s most important.
- Alignment: Ensures that product development efforts are aligned with the business goals and market needs.
- Decision-Making: Aids in making informed decisions regarding feature prioritisation, resource allocation, and market targeting.
- Competitiveness: Enhances the product’s market positioning by clearly defining its unique value proposition and competitive advantages.
Context
Industry Context
A lot of products are a collection of features rather than a coherent solution to a customer problem. This is because features come from a range of different stakeholders, who have different perspectives and priorities. The impact of this is that the product is often complicated to use and does not deliver a clear value proposition to the customer.
ZeroBlockers Context
Product Teams do not build the product or even define the features to be built. They set the direction and outcomes, which are then executed by Stream Teams. Therefore the product strategy is essential for aligning the efforts of multiple Stream Teams and ensuring that they are all working towards a common goal.
Methods
| Method | Description | Benefits |
|---|---|---|
| Diagnose the Current State | Assessing the current state of the product and the challenges that are preventing it from achieving its full potential. | Helps in identifying areas for improvement and setting strategic goals. |
| Identify the Target Market | Assessing the market size, growth potential, competition, and other factors to determine the product’s viability. | Helps in identifying market opportunities and potential threats. |
| Determine Internal Capabilities | Evaluating the company’s resources, expertise, and technology to determine the product’s unfair advantage. | Ensures alignment between the product strategy and the company’s capabilities. |
| Define the Value Proposition | A tool used to ensure the product delivers unique value to its customers, aligning with their needs and problems. | Clarifies the product’s value proposition, improving customer engagement and satisfaction. |
| Document the Product Strategy | Articulating the product’s strategic direction, target market, value proposition, and key features to achieve the product vision. | Provides guidelines for product development and marketing efforts. |
Anti-patterns
- Strategy Based on Assumptions: Relying on assumptions about the market or customer needs without validating them through research.
- Feature-Driven Strategy: Prioritising features without a clear understanding of how they contribute to the overall value proposition.
- Neglecting Competitive Landscape: Failing to consider the competitive landscape and potential threats.
Case Studies
Mature Product
How PayPal used strong product management skills to overhaul a neglected mature product.
PayPal
Product-Led Growth
How Revolut managed to grow in a high cost industry through the use of Product-Led growth tactics.
Revolut
Implementing Design Thinking Strategy at Booking.com
How Booking.com utilized the design thinking process to develop a new product strategy, specifically addressing the quality rating system for vacation rentals.
Booking.com
Strategic Alignment by Design at Verizon Connect
How Verizon Connect achieved strategic alignment through design, focusing on balancing short-term fixes and long-term vision
Verizon Connect
