Professional Documents
Culture Documents
Prof.Krairit Boonyakiat
Product Strategy vs. Business
Strategy
• Business Strategy helps decide which markets
to be in :
• Predicts industry structure
• Predicts profitability of the market
• Well studied by academics
• Good theoretical frameworks available
• Product Strategy is your plan for winning your
market :
• Find product and product portfolio level competitive
advantages
• Anticipate how competitors will respond
• Not well studied by academics
Components of Product
Strategy
• How will our competitors respond?
• What prevent competitors from imitating us?
• Who are the target customers?
• How will we meet their needs better than the
alternatives?
• What are they actually trying to accomplish?
• How are they underserved today?
• What are our unit economics?
Porter’s Generic Strategies: Cost Leadership,
Differentiation and Focus
Differentiation:
Broad Scope vs Niche
• How much of the’ market to go after is one of the
most fundamental product strategy decisions
• Whole Market Example: Salesforce
• There many vertically focused CRM solutions that compete
effectively with Salesforce in a market niche
• Vertical focus doesn’t strategically make sense for Salesforce