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Crafting Your Product Strategy
The document outlines the essentials of crafting a product strategy, detailing three layers: vision, strategy, and tactics. Key components include defining the target market, value proposition, and guiding principles, while emphasizing the importance of sustainable competitive advantage and understanding industry dynamics. It also highlights examples of successful strategies and provides a framework for research and implementation in product strategy development.
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Crafting Your Product Strategy
- 1. Crafting Your ProductStrategy By Ryan Glasgow rglasgow.com ▪ @ryanglasgow
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- 4. Three Layers Vision Describes thedesired future position of the product or customer. Components: ➔ Vision statement ➔ Business goals Strategy A unique and valuable position, involving a different set of activities. Components: ➔ Strategy statement ➔ Guiding principles ➔ Areas of focus ➔ Personas Tactics All the decisions and activities required to turn the strategy into reality. Components: ➔ Product specs ➔ User stories ➔ Mockups ➔ Code
- 5. Throughout history, strategyoften determines the winner when competition is involved Recent Examples: ➔ Southwest Airlines ➔ Ikea ➔ Apple’s iPod ➔ Warrior’s small-ball lineup
- 6. What is Strategy? ➔How you plan to create a sustainable competitive advantage to maximize your position ➔ Choosing what not to do ➔ Designate and apply a focus with all available resources
- 7. Strategy is nothow you work Scrum ▪ Agile ▪ Quality Assurance ▪ Efficiency ▪ Culture ▪ Company perks ▪ Technology ▪ Team
- 8. Every product needsa strategy Pre product/market fit ➔ A set of assumptions for how you want to grow and win Post product/market fit ➔ Also a set of assumptions for how you want to grow further and win
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- 10. Research Industry Lifecycle stage, revenuesize, growth rate, profitability, success factors, barriers to entry, vertical integration Competition Profiles, competitive positioning, substitutes, complements, degree of vertical integration, strategies of key competitors Customers Profile, demographic, needs, obstacles/challenges, price sensitivity Internal Monthly usage, daily usage, net promoter score, monthly recurring revenue, customer lifetime value, churn Deep dive into areas that affect the product
- 11. Determine your goal SmartphoneIndustry: iOS owns 94% of profits Android owns 83% of market share
- 12. Strategic Advantage StrategicTarget Uniqueness Perceivedby the Customer Low Cost Position Industry Wide Particular Segment Only Differentiation Overall Cost Leadership Stuck in the Middle Focus Goals
- 13. Strategic Advantage StrategicTarget Uniqueness Perceivedby the Customer Low Cost Position Industry Wide Particular Segment Only Hyundai, KiaFord, Chevrolet, Honda Chrysler Subaru, Tesla Dodge, Scion, Jeep Cars
- 14. Diagnosis ➔ Use researchto understand the situation ➔ Look for major shifts in customer preference or profile, competitors, industry, trends ➔ Define one overall challenge you want to address over next 1-3 years
- 15. Key Components Where toPlay Who should be the customers that define our target market? Examples: ● Spending power ● Age ● Location ● Tech savviness How to Win What should be the value proposition that differentiates our products and services with those customers? Examples: ● Product vs platform ● Simple vs robust ● Intuitive vs affordable ● Extensible vs secure ● Portable vs powerful ● Quality vs cutting edge
- 16. Strategy Statement ➔ 15-words orless ➔ States your target customer and a compelling value proposition ➔ Easy to understand and communicate ➔ Conveys clarity to to your team
- 17. Examples Ikea "Offering a widerange of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them." SnapChat An fun and spontaneous product to communicate with your closest friends without repercussion. Spotify Music tailored to your mood.
- 18. Guiding Principles :SnapChat Fun Close Friends No repercussions Filters Easter eggs Ghost QR code Snap time limit 24hr Story Screenshots monitored No feed algorithm Disappearing chat Key activities that execute your strategy
- 19. Degree of VerticalIntegration Product ➔ Create value by developing differentiated products for specific customer needs ➔ Capture value by charging money for those items ➔ Meeting specific customer needs ➔ Competitive advantage stems from product- related sources such as differentiation Platform ➔ Create value primarily by connecting users and third parties ➔ Capture value by charging fees for access to the platform ➔ Maximize the number of interactions ➔ Competitive advantage stems from the network effects of connecting many users and third parties
- 20. Implement Benefits ➔ Clearly documentand share the context for your product decisions ➔ Increased autonomy for cross-functional team ➔ Team can make better decisions independently ➔ Ensures company alignment across product, design, engineering, marketing, customer support, etc Circulate ➔ Presentation or wiki that’s presented annually or bi-annually ➔ Regularly reviewed ➔ Integrated into daily, weekly, and monthly communication
- 21. Lean Strategy Canvas Vision ➔Overarching goal for creating the product ➔ Long-term business goals Challenge ➔ Identify a long-term business opportunity that needs to be addressed Target Customer ➔ Market and audience group that your product addresses Value Proposition ➔ How you plan to differentiate from competitors and appeal to an audience Strategy Statement ➔ 15-words or less that summary Guiding Principles ➔ Focused set of key activities that support your strategy
- 22. Resources ● What isStrategy ● Good Strategy Bad Strategy ● Porter’s Generic Strategies ● The Art of Crafting a 15-Word Strategy Statement
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