So what is a product strategy? In its essence, the product strategy is a detailed high-level plan used to develop a product. It determines product goals throughout its life cycle, its value proposition, and its target audience. So, it defines both the product vision and establishes the ways in which that vision will be realised.
The product strategy deals with the “big picture,” as it helps the organisation justify the very existence of the product and identifies how the potential users will benefit from it.
Product strategy, therefore, serves as a critical connection that ties the user needs with the organisational goals so the true purpose of the product can be easily communicated. When it’s fine-tuned and well-coordinated, product strategy makes sure that everyone involved is working in sync to reach a common high-level goal – a successful product. It’s a necessary stage in turning the product vision into action and developing the actual product.
It’s important to understand that the product strategy is not created in a vacuum. A strong product strategy is not possible without understanding the market context and the environment the organisation operates in. It’s important to appreciate the challenges the customers face, have familiarity with other solutions and options currently present on the market, and be capable of showing why a particular product may be superior to others.
It’s not rare that a product strategy goes through several iterations before assuming its final form. This is particularly the case in the early process stages. Because of this, the strategy must have a certain flexibility, so it can adapt to changing market conditions and user needs as more information become available through product feedback and testing of product-market fit. However, once determined, the product strategy should serve as a stable and solid touchpoint in alignment with the organisation’s core vision.
