Success Breeds Inequality: Managing New vs Established Products and the Growing Wealth Gap

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Jul 04, 2023

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Success Breeds Inequality: Managing New vs Established Products and the Growing Wealth Gap

In today's rapidly evolving business landscape, companies face the constant challenge of managing both new and established products. The decision-making process for each requires careful consideration of various factors, including internal alignment, strategy fit with users, and changes in the competitor landscape. However, the differences between building a new product initiative and optimizing an existing one are also significant.

When developing a long-term roadmap for a new product, there are several crucial aspects to consider. Internal alignment is essential to ensure that all stakeholders within the organization are on the same page. This alignment ensures that everyone understands the goals, vision, and strategy of the new product. Without internal alignment, even the most innovative idea may struggle to gain traction.

Another important consideration is the strategy fit with users. Understanding the needs and preferences of the target audience is crucial for developing a product that resonates with them. Conducting thorough market research, user interviews, and surveys can provide valuable insights into what users truly want and need. By aligning the product strategy with user preferences, companies can increase their chances of success.

Moreover, keeping an eye on the competitor landscape is vital for staying ahead in the market. Analyzing competitor products, their features, and their market positioning can help identify gaps and opportunities for differentiation. By continuously monitoring the competition, companies can adjust their strategies and offerings accordingly, ensuring that they stay relevant and competitive.

On the other hand, optimizing and growing an existing product or segment requires a different approach. The primary focus here is on establishing and maintaining product-market fit. This means continuously evaluating and improving the product based on user feedback and market trends. By listening to customer needs and adapting the product to meet those needs, companies can ensure customer satisfaction and loyalty.

For aspiring product managers (PMs), breaking into the field can be challenging. One valuable resource is the Associate Product Manager (APM) program. This program provides hands-on experience and mentorship, giving aspiring PMs a solid foundation in product management. If the APM program is not accessible, another option is to join a company that has an APM program in a different role and work your way into it. This allows individuals to gain exposure to the field and build relevant skills and experience.

Transitioning into a product role at a different company can also come with its own set of adjustments. For example, moving from a smaller company like Yelp or Yahoo to a tech giant like Facebook can be a significant change. One of the most notable differences is the size of the organization. At Facebook, with its massive employee count, PMs have to find ways to move fast by democratizing information through strong company-wide communication. This ensures that everyone is on the same page and can work together efficiently.

Additionally, the scale of impact at larger companies like Facebook is often much greater. Products developed at such companies have the potential to reach and impact millions, if not billions, of users. This requires PMs to think on a larger scale and consider the broader implications of their decisions. It also means that the stakes are higher, as the success or failure of a product can have a significant impact on the company's overall performance.

In some product areas, proving return on investment (ROI) can be challenging, such as improving customer service. However, most things are measurable in some way. For instance, in the case of WhatsApp business messaging, metrics like the number of advertisers, messages being sent, and the number of businesses using the product can define the health of the overall ecosystem. By tracking and analyzing these metrics, PMs can gain insights into the effectiveness of their efforts and make data-driven decisions.

Furthermore, success in the business world has increasingly bred inequality. The recovery from the Great Depression of the 1930s was characterized by a degree of social solidarity and a narrowing of the gap between the rich and poor. However, the recovery from the Great Recession of 2007–2009 has been vastly different. In the United States, for example, the gap between the wage growth of the rich and that of the poor has widened significantly. This growing wealth gap has been exacerbated by the dramatic difference in earnings between the most successful firms and the rest.

One factor contributing to this inequality is the less progressive nature of the tax system. Over time, the tax system has become less progressive, meaning that the burden falls more heavily on the middle and lower income brackets. This puts a strain on those who are already struggling financially, while the wealthy continue to accumulate wealth at a faster rate.

In conclusion, managing new and established products requires careful consideration of various factors, including internal alignment, strategy fit with users, and changes in the competitor landscape. Transitioning into a product management role can be challenging, but resources like APM programs and gaining experience at companies with APM programs can help aspiring PMs break into the field. Adjustments may be necessary when moving from smaller to larger companies, such as democratizing information and considering the scale of impact. Metrics play a crucial role in measuring success and proving ROI. However, it is essential to acknowledge the growing wealth gap and the less progressive tax system that contributes to it. Addressing these inequalities is crucial for a more sustainable and equitable future.