Developing a Product Strategy: Best Practices and Obvious Advice

Developing a Product Strategy: Best Practices and Obvious Advice

Introduction:

Developing a successful product strategy requires a clear understanding of the problem, identifying unique value propositions, and effective execution. While these key elements may seem obvious, they hold immense importance in shaping a product's success. In this article, we will explore the best practices for developing a product strategy and delve into the value of seemingly obvious advice.

Section 1 - Understand the Problem:

Every product strategy begins with a concise problem statement. It is crucial to know the problem you aim to solve and the target audience you are solving it for. Defining the problem and audience provides a solid foundation for building a successful product.

When defining the problem, think about your favorite products and the unique problem they solve in just a few words. Companies like Airbnb, Amazon, Coursera, Facebook, Google, WhatsApp, and YouTube have all mastered this art. Additionally, understanding your audience is essential, as it helps in tailoring the product to their needs and preferences. Differentiating between the problem-solver and the decision-maker is particularly crucial in enterprise products.

Furthermore, it is advisable to win in one market before expanding globally. By focusing on a specific market, you can build capabilities and later expand to adjacent verticals or experiences. This approach ensures a strong foothold and a better understanding of your product's potential.

Section 2 - Identify your Unique Value:

To stand out in a competitive market, it is essential to identify your product's unique value proposition. Companies like Amazon AWS, Apple iPhone, and Facebook Marketplace have successfully differentiated themselves by offering distinct capabilities or design elements. While it may seem obvious, recognizing your unique value is vital for attracting customers and gaining a competitive edge.

In addition to creating value for customers, considering the impact on humanity or contributing to a larger cause can further enhance your product's appeal. For instance, Glasp, a learning platform, emphasizes the importance of contributing to humanity while facilitating individual learning journeys.

Section 3 - Outline your Execution Plan:

While strategy plays a crucial role, successful execution is the differentiating factor between winning and losing companies. It is important to have a clear vision of where you want to be in the next two years and break it down into manageable phases. Each phase should focus on specific objectives and learnings, which will inform subsequent phases.

Defining success is another essential aspect of the execution plan. Success should be measurable and continuously monitored to ensure that you are on track. Moreover, identifying potential risks and pitfalls allows for proactive mitigation strategies. By assessing risks and maintaining clear thinking in the face of adversity, you can ensure the execution of an effective strategy.

Obvious Advice: The Value of Basics and "Counterintuitive" Ideas:

Contrary to popular belief, obvious advice often holds immense value. Scott H Young, an author, highlights that even if advice seems obvious, it can still be useful. Our intuitions may be fuzzy, making scenarios appear plausible when they are not.

For instance, promoting a book through podcast appearances may seem obvious, yet many authors fail to capitalize on this strategy. James Clear's success with Atomic Habits underscores the importance of executing seemingly obvious tactics that align with our goals.

Conclusion:

Developing a product strategy requires a deep understanding of the problem, identification of unique value propositions, and effective execution. While these aspects may seem obvious, they are often overlooked or not fully leveraged. By incorporating these best practices and embracing seemingly obvious advice, you can enhance your product's chances of success.

Actionable Advice:

• 1. Clearly define the problem you aim to solve and identify your target audience. This understanding forms the foundation of your product strategy.

• 2. Identify and emphasize your unique value proposition. Stand out from competitors by offering something distinct and appealing to customers.

• 3. Develop a comprehensive execution plan with measurable objectives and a clear vision of success. Monitor progress and proactively address risks and challenges.

Remember, success lies not only in complex strategies but also in the execution of seemingly obvious tactics. By focusing on the basics and embracing the value of "obvious" advice, you can significantly improve your product's trajectory.