How to answer Strategy Questions (Product Management Interview)

Summary

In this video, Diego Granados, a product manager, explains how to approach strategy questions in product management interviews. These open-ended questions, like whether Netflix should enter the video game industry, focus more on your problem-solving process than on finding a 'right' answer. Diego advises clarifying the question, considering customers, the company’s mission, competitors, suppliers, and market trends. He highlights the importance of frameworks like Porter's Five Forces to help structure your thoughts. The video provides actionable tips to prepare for and navigate challenging strategy questions in interviews.

Takeaways

• 📚 There is no right answer to strategy questions; the interviewer focuses on how you approach the problem.
• ❓ Clarify any ambiguities in the question before solving, ensuring you and the interviewer are on the same page.
• 👥 Focus on customers and the company; consider who the customers are, their needs, and how the company addresses them.
• 🎯 Align your answer with the company's mission and vision when tackling strategy questions.
• 🏆 Competitors are essential to consider; assess how the company's move will affect competitors or introduce new ones.
• 🤝 Think about potential partnerships, mergers, or acquisitions and their synergies or risks.
• ⚙️ Suppliers and providers play a crucial role; understand their motivations and how they impact company decisions.
• 🌍 Take the broader market environment into account, including trends and consumer behavior.
• 🕹️ Use relevant industry examples like Netflix entering the video game industry to structure your analysis.
• 🔍 Reading on frameworks like Porter's Five Forces and the 3Cs can help deepen your understanding of strategy questions.

Q & A

What is the main topic of the video?

The video discusses how to prepare for strategy questions in a product management interview, providing tips on how to approach and answer these open-ended questions.

Why are strategy questions considered tricky in product management interviews?

Strategy questions are tricky because they are often open-ended and do not have a single correct answer. Interviewers are more interested in the candidate's thought process and problem-solving approach.

What should be the first step when answering a strategy question in an interview?

The first step is to clarify the question. It's important to remove any ambiguity and ensure both the interviewer and the candidate have a shared understanding of the problem being addressed.

What role do customers and the company play when solving a strategy question?

When solving a strategy question, it's essential to consider the customers' needs, pain points, and alternatives. Additionally, understanding the company's mission, vision, and how it addresses customer problems is crucial.

How should a candidate approach questions related to competitors in a strategy interview?

Candidates should discuss the company's competitors, how the company's decisions will affect those competitors, and whether entering a new industry will introduce new competitors.

What other factors besides customers and competitors should a candidate consider?

Candidates should also consider suppliers, partners, and external environmental factors such as industry trends and changes in consumer behavior.

How does the video suggest using frameworks for strategy questions?

The video suggests using frameworks like Porter's Five Forces and the 3 Cs to analyze a company's competitive environment and guide the discussion when answering strategy questions.

What is the significance of discussing the company's mission and vision in a strategy question?

Discussing the company's mission and vision helps to ensure that the proposed solution aligns with the company's long-term goals and values, providing a strategic fit for any proposed actions.

What are some of the key external factors that may impact a company's strategic decisions?

Key external factors include market trends, technological changes, consumer behavior, and industry shifts, such as the growth of mobile gaming or the emergence of esports, which could influence a company's strategy.

What is the main takeaway for candidates when answering strategy questions in an interview?

The main takeaway is that there is no single correct answer to strategy questions. What matters is how candidates structure their ideas, clarify ambiguities, and consider various factors like customers, competitors, suppliers, and the broader environment.