Product Strategy Framework Definition - Product strategy refers to a company's plan for defining a product's vision and outlining how it will be fulfilled. The "big picture" of a product is considered while developing a product strategy, which helps businesses to demonstrate why their product is necessary and how users will gain value from it.
Product strategy refers to a company's plan for defining a product's vision and outlining how it will be fulfilled. The "big picture" of a product is considered while developing a product strategy, which helps businesses to demonstrate why their product is necessary and how users will gain value from it.
A well-adjusted product strategy makes sure that everyone is coordinating their efforts to achieve the same overarching business objectives.
Cost Strategy - Cost strategy aims to produce the best product at the most affordable cost. It evaluates the resources being utilized and identifies areas of production where money may be saved.
Differentiation Strategy - This strategy looks away from the price and focuses on other ways to differentiate. This might be through unique functionality or by producing a luxury product using the best materials.
Focus Strategy - The focus strategy is a great way to cater to a specific group of customers by creating a product that solves a very specific problem.
Quality Strategy - This product strategy focuses on bringing the highest quality product to the market. Even though the price is higher, customers are willing to pay for a luxury item they deem worthy of their investment.
You’ve probably heard the story of how Netflix first entered the market — and how the, now huge media juggernaut, was looking to innovate within the ‘rent DVDs at home’ space. With this proposition, Netflix was taking on the dominant Blockbuster using a cost product strategy.
However, when Netflix later pivoted to streaming — and essentially created the sector — the brand was utilizing a differentiation strategy, offering customers something they’d never seen before.
A product strategy framework is typically built by following these steps:
Step 1: Outline your product’s vision.
Step 2: Analyze the demands and needs of your target customers.
Step 3: Establish objectives and goals early.
Step 4: Monitor your KPIs.
Step 5: Research and analyze your product’s competitors.