Developing a Product Vision and Strategy
Developing a product vision and strategy is a critical component of product management. A product vision is a long-term view of the product, while a product strategy is the plan for achieving that vision.
In this article, we will explore the key steps for developing a product vision and strategy.
Understand the Market
The first step in developing a product vision and strategy is to understand the market in which the product operates. This involves conducting market research to identify trends, customer needs, and the competitive landscape. A successful product manager must be able to gather and analyze data to inform product decisions.
Define the Product Vision
Once you have a good understanding of the market, you can define the product vision. A product vision is a statement that articulates the long-term view of the product. It should be clear, concise, and inspirational. A product vision should answer the question, “What problem are we solving for our customers?”
Identify Product Goals
After defining the product vision, the next step is to identify specific goals for the product. These goals should be aligned with the product vision and should be measurable. A successful product manager must be able to prioritize goals and identify the key metrics for measuring success.
Develop the Product Strategy
Once the product goals have been identified, the next step is to develop the product strategy. A product strategy is the plan for achieving the product vision and goals. It should be a roadmap that outlines the key milestones, features, and initiatives needed to achieve the product goals.
Communicate the Product Vision and Strategy
Once the product vision and strategy have been developed, it is critical to communicate them effectively to stakeholders. This includes the product team, executives, sales teams, and customers. A successful product manager must be able to articulate the product vision and strategy in a clear and compelling manner.
Continuously Refine the Product Strategy
Finally, a successful product manager must be willing to continuously refine the product strategy based on market feedback and changing business objectives. This involves regularly reviewing and updating the product roadmap and adjusting priorities as needed.
Examples
There have been many companies and products throughout history that have had successful product visions and strategy execution. Here are a few notable examples:
- Apple iPhone
Apple’s iPhone is widely regarded as one of the most successful product launches in history. The product vision was to create a device that combined a phone, music player, and internet browser into one seamless experience. The strategy execution was flawless, with Apple investing heavily in marketing, design, and user experience. The result was a product that transformed the mobile phone industry and set the standard for all future smartphones. - Amazon Prime
Amazon Prime is a subscription service that provides customers with free two-day shipping, access to streaming of movies and TV shows, and other benefits. The product vision was to create a service that would incentivize customers to shop more frequently on Amazon and increase customer loyalty. The strategy execution was brilliant, with Amazon investing heavily in logistics and fulfillment infrastructure, marketing the benefits of Prime aggressively, and constantly adding new benefits to the service. Today, Prime has over 200 million subscribers worldwide and is a critical driver of Amazon’s overall success. - Tesla Model S
The Tesla Model S is an all-electric luxury sedan that was launched in 2012. The product vision was to create an electric car that was not only environmentally friendly but also stylish, high-performing, and fun to drive. The strategy execution was impressive, with Tesla investing heavily in battery technology, design, and user experience. The result was a car that disrupted the entire automotive industry and established Tesla as a leader in the electric vehicle market. - Airbnb
Airbnb is a platform that allows individuals to rent out their homes or apartments to travelers. The product vision was to create a marketplace that would disrupt the traditional hotel industry by providing travelers with a unique and authentic travel experience. The strategy execution was innovative, with Airbnb investing heavily in user experience, marketing, and community-building. The result was a platform that transformed the travel industry and is now valued at over $100 billion.
Case Study — iPhone:
Product Vision:
The product vision of the iPhone was to create a device that combined a phone, music player, and internet browser into one seamless experience. Apple’s goal was to create a product that would revolutionize the mobile phone industry and provide users with a new level of convenience and functionality.
Product Strategy
The iPhone product strategy was built around the concept of simplicity, elegance, and ease-of-use. Apple designed the iPhone to be intuitive and user-friendly, with a simple and clean interface that allowed users to easily access the features and functions they needed. The strategy was based on providing a seamless integration of hardware, software, and services, making the iPhone a complete solution for users’ communication and entertainment needs.
Apple’s product strategy also focused on creating a premium product that would appeal to high-end consumers. The company invested heavily in design, manufacturing, and marketing, creating a product that was both visually stunning and highly functional. Apple also leveraged its brand reputation for quality and innovation to differentiate the iPhone from competitors in the market.
Over time, Apple has continued to evolve and refine its product vision and strategy for the iPhone, adding new features and functionality to the device, such as facial recognition, improved camera technology, and wireless charging. The company has also expanded the iPhone product line to include a range of models and price points, from entry-level models to high-end devices.
Overall, the product vision and strategy of the iPhone have been highly successful, leading to tremendous growth and profitability for Apple and establishing the iPhone as one of the most iconic and influential products of all time.
Case Study: Amazon Prime
Amazon Prime is a subscription service offered by Amazon that provides customers with free two-day shipping, access to streaming of movies and TV shows, and other benefits such as discounts on products, exclusive deals, and access to Amazon Prime Day.
Product Vision:
The product vision for Amazon Prime was to create a loyalty program that would incentivize customers to shop more frequently on Amazon and increase customer retention.
Product Strategy
The product strategy for Amazon Prime was built around three main pillars: convenience, value, and differentiation. To execute this strategy, Amazon invested heavily in logistics and fulfillment infrastructure to ensure fast and reliable delivery, offered a range of benefits to provide customers with value beyond just free shipping, and constantly added new benefits to the service to differentiate it from other loyalty programs.
One key aspect of the product strategy was to leverage Amazon’s vast customer data to personalize the service and make it more appealing to individual customers. For example, Amazon uses data to provide personalized product recommendations, offer targeted promotions, and create custom product bundles that are tailored to each customer’s shopping habits and preferences.
Amazon Prime’s success is a testament to the effectiveness of its product strategy and vision. Today, Prime has over 200 million subscribers worldwide and is a critical driver of Amazon’s overall success. MBA students can learn from Amazon’s success by studying the key components of its product strategy and vision and how it executed these components to achieve its goals.
Case Study: Tesla Model S
Product Vision:
Tesla’s product vision is to create a sustainable future by accelerating the world’s transition to electric mobility. Tesla envisions a world where electric cars are the norm, reducing our dependence on fossil fuels and creating a cleaner environment.
Tesla’s product vision is supported by the following:
- Environmental Sustainability: Tesla’s focus on electric cars is driven by the goal of reducing carbon emissions and combating climate change.
- Disruption of Traditional Automotive Industry: Tesla’s vision is to disrupt the traditional automotive industry, challenging the status quo and creating a new market for electric cars.
- Customer-Centric Approach: Tesla’s product vision is based on creating products that meet the needs of their customers, providing them with a superior driving experience and making electric cars more accessible and practical.
Product Strategy:
The product strategy of Tesla Model S is based on creating a luxury electric car that offers a superior driving experience to gasoline-powered cars. Tesla’s strategy focuses on creating an environmentally friendly, high-performance car that combines advanced technology with luxury design and user experience.
The key elements of Tesla’s product strategy are:
- Innovation in Battery Technology: Tesla’s innovative battery technology provides a longer range and faster charging time compared to other electric cars, making it more convenient and practical for everyday use.
- Superior Performance: Tesla Model S is known for its exceptional acceleration and handling, making it a driver’s car.
- Luxury Design and User Experience: Tesla Model S offers a sleek and modern design, with a large touchscreen interface and advanced driver assistance features, providing a premium user experience.
- Brand Identity: Tesla has built a brand identity around being environmentally friendly, innovative, and customer-focused, which has helped them differentiate from other luxury car brands.
The product strategy and vision of Tesla Model S are based on creating a luxury electric car that offers a superior driving experience while promoting environmental sustainability and disrupting the traditional automotive industry. Tesla’s focus on innovation, customer-centricity, and brand differentiation has enabled them to create a unique position in the market and establish themselves as a leader in the electric vehicle industry.
Case Study: Airbnb
Airbnb is a successful online platform that allows travelers to book unique and authentic accommodations around the world, including apartments, houses, and even castles. The product strategy and vision of Airbnb are closely tied to the company’s mission statement, which is “to create a world where anyone can belong anywhere.”
Product Vision:
Airbnb’s product vision is to disrupt the traditional hotel industry by providing travelers with a unique and authentic travel experience. Airbnb’s founders believed that travelers were looking for more than just a place to sleep — they were seeking a sense of community and a connection with local cultures. The company’s product vision is to provide travelers with access to a wide range of accommodations that meet their unique needs, preferences, and budget.
Product Strategy:
Airbnb’s product strategy is built around three key pillars:
- Building a two-sided marketplace: Airbnb’s success is largely due to its ability to connect travelers with hosts who are willing to rent out their homes or apartments. The company’s product strategy focuses on building and improving its platform to create a seamless and user-friendly experience for both hosts and guests.
- Offering a variety of accommodations: Airbnb’s product strategy is to provide travelers with a wide range of accommodations to choose from, including apartments, houses, and even unique properties like treehouses and castles. By offering a diverse selection of accommodations, Airbnb aims to appeal to a broad range of travelers and provide them with a unique and authentic travel experience.
- Creating a sense of community: Airbnb’s product strategy is to create a sense of community among its users. The company has invested heavily in building features that encourage interaction between hosts and guests, such as reviews, messaging, and social media integration. Airbnb believes that by creating a sense of community, it can increase user engagement and loyalty.
Airbnb’s product strategy and vision are built around disrupting the traditional hotel industry by providing travelers with a unique and authentic travel experience. The company’s focus on building a two-sided marketplace, offering a variety of accommodations, and creating a sense of community has helped it become one of the most successful and innovative companies in the travel industry.
