What is this question about?
As a product manager, one of your most important decisions is what product to build next to grow revenue. In larger enterprises, this sometimes means considering entering a new market. This interview question tests whether you can think strategically about how to find the best market to expand into.
What is the interviewer looking for?
The interviewer is evaluating you on the following:
- Are you knowledgeable about growth strategies?
- Can you think critically about which strategy could be the most fruitful given the business objective, the current product performance, the market, competition, and trends?
- Can you answer the question in a structured and organized way, or do you shoot from the hip and do so without taking a moment to think about the question?
- Do you have original ideas?
- Are you articulate or do you tend to ramble?
How to structure your answer?
We suggest structuring your answer in the following way:
- Describe the current state of the company and the problem.
- Talk about how you will analyze the problem (use a framework).
- Analyze three to four possible solutions.
- Make a recommendation.
A recommended book to learn more about product strategy is Product Strategy for High Technology Companies by Michael E. McGrath.