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should google enter the video streaming space should facebook build a dating app to compete with tinder and bumble and should swiggy and zomato get into the restaurant business and start their own restaurant these are strategy and go-to-market questions that are typically asked in pm interviews a lot of candidates have a hard time answering these and so in today's video we'll take
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an in-depth look into how to answer them before we jump ahead if you haven't checked out the previous videos as part of the channel do make sure to check them out and don't forget to hit that like and subscribe button strategy and go to market questions generally test you on how well you're able to put on your cxo thinking hat and how well you're able to break down a
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vague and ambiguous problem and come up with a solution for it the question would generally come in the form of should x enter y market where x is the company and why is the market that you want to enter into before we move into what you're supposed to do in these questions here's what you're not supposed to do remember to not jump to any conclusion as soon as the question
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is posed to you when the question is posed to you should x enter why market your answer should never be yes or no you're always supposed to say hey here is the five step process that i want to follow and based on my analysis i'm going to come up with my opinion on what the next strategy should be the reason why you're supposed to do this is because in an interview what you're
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being tested on is not whether you're right or wrong but how much of a structure you're able to follow and how well you're able to break down the problem from an ambiguous vague one to something that's much more manageable and something from which you can actually take a solution out of so having said that how do you approach them to start with the first part of should x enter y market you can follow
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the framework called as a 5c framework 5c stands for competition company customer collaborators and climate what you're supposed to do here is think about these points come up with data points from your analysis of each of these points and then take a call on whether a company should enter or not enter a particular market in the point
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about competition think about what is the existing competition in that new market are there too many players are there too few players and do the competitors have any unfair advantages that we don't when you think about customers think about the current customers that you have and think about the future customers that you're going
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to have in the new market that you're going to play in do they have any synergies between each other as an example if facebook the social networking app decides to get into dating and decides to build an app for dating it still can make the case that the customers would have some synergies with dating because still at the end of
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the day it's still social and it still connects people but then if facebook decides to get into say the cloud business like amazon web services it wouldn't really make a lot of sense because no customer who really wants to you know purchase cloud storage is going to trust facebook with their data when you think about the company think about
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the strengths and weaknesses of the company what are those few things that your company is extremely strong at and what are those things that they are not very good at because at the end of the day you have to ensure that when you're entering a particular industry it is well within your abilities to actually
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do so that you have the skills and resources do so and that you're not biting off more than what you can chew when you think about collaborators what you're supposed to see here is can you enter the market on your own or do you need to partner or collaborate with somebody else when you think about the climate this is all about the environment that you can operate in regulatory political economic and so on
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think about whether you need licenses to operate what is the say the political condition of that particular region if you're entering a new region and maybe if the customers have enough purchasing power or not at this point given the analysis that you've done take a look at all of the points that you've thought about in the
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5c framework and come up with the answer to the question of should x enter y market if your answer is no then the question most likely ends right there if your answer is yes that the company should enter in this particular market then there could be a lot of follow-up questions one of the first follow-up questions
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could be how and where should we enter in this particular market now this is a two-part question for the first part of where do you want to enter what you're supposed to do here is take a look at the value chain or the customer journey in that particular industry and think about which phase would make
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the most sense for you as a company given your strengths and your weaknesses and where the gap exists and for the second part of the question of how do you want to enter once you've figured out which phase you want to be at think about the business model or the operating model that you really want to have there let me take an example to
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show this to you imagine if facebook decides that they want to enter the travel industry travel industry is a really vague term so let's try and break it down so to start with when you want to travel some place you're going to explore so here you might go on google you might search for some places you might watch a
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video on youtube you might even ask your friends you might go to instagram you might go to facebook you may do a whole bunch of things once you've decided on where you want to go the next step is for you to book those tickets here you're most likely going to an online ticket booking platform and booking those tickets the next thing is for you to travel this is where you're going to
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get on a flight and you're going to fly the next thing is for you to stay at some hotel and this is basically the hotel itself so in these four phases there could be more but let's just keep it to these four for now when these four phases where do you think facebook's biggest strength lies and where do you think facebook should play if they decide to
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enter the travel industry it's most definitely not in owning their own hotels and it's most definitely not in running their own airline service if anything it's in the first phase of discovery and exploration or maybe it's in the second phase of building an entire ticket booking platform you would
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actually argue that it makes most sense to actually be in the first phase given the fact that facebook already has a lot of people on the platform putting up their pictures checking in at different hotels uh facebook knows what time of the year they travel when do they travel where they travel and so on and so forth they have a ton of details around that and
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probably would make the most sense if they're going to come up with some features that's going to help users to discover great places to travel but once the second part of the question of how do you really want to enter and how do you really want to play here think about this if you're in the hotel business you have a few options for you you could
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either be like taj hilton and marriott which are more like fully owned hotels or you could be like oyo which is more around the aggregator model a business model that you want to pick would really depend on the phase that you're really trying to target for hotels the aggregator or the fully owned works but
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for another face it could be very different models that you'll have to look at once you finish the answer for this a follow-up question that you might be asked is how are you going to design the mvp for this particular solution this question is actually a very typical design question where you have to turn around the problem statement from a strategy one to one where it says
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facebook wants to enter the travel industry and it wants to launch a feature that helps customers to discover great places to travel now how do you design a solution for it so what you do here is you basically go through the customer pain points come up with some features prioritize them put on metrics for those and then summarize
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the entire mvp to the interviewer once you're done with this there could be another follow-up question which is how are you gonna now launch your product this is more around the lines of go to market now for this there are a few things that you need to keep in mind the first is to understand what the product does who is the user for which it's targeted and what is that problem that
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the product is solving for the particular user the next thing is to figure out what is the goal of the launch or the mvp generally if you're launching an mvp your goal may not be revenue because revenue would come probably a little bit later but you would have to figure that out as to what that goal is going to be is it revenue is it engagement is it
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growth or is it some other business goal based on the answers to these two things you have to decide whether you want to go with a big bank or a limited rollout big bank generally means that you launch across to all of the customers on day zero and limited rollout generally means that you launch to say a small section of customers on day zero and then you
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gradually increase the number of customers that you wanna launch into the advantage with the limited rollout is that in case there are some issues with your product there is always the safety net that you haven't exposed your product to a lot of customers and there's not going to be a lot of backlash and reputation damage as much as it would be with a big
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bang launch next thing to do is to figure out how we're going to increase that awareness and raise that buzz about your entire product now here is where you think about marketing in a sense about what are those top of the funnel channels that you really want to use to target these customers now this would
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really depend on your answers to the first two questions and if there's any distribution involved then what channels are you going to use to distribute your product and the last one to think about is what partnerships do you need to have in order to launch your product what you have to do is summarize all of this with interviewer and come up with your own go to market strategy on how to
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launch this particular product so that concludes the approaches and the frameworks that you can use to answer product strategy and go to market questions as usual check out this reference sheet attached below and until the next one bye