How to Answer Product Strategy Questions in a PM Interview
Step by step guide on how to answer Product Strategy Questions with an example
Product strategy questions are among the most challenging and most important questions you’ll face in a Product Manager interview. Unlike behavioral questions that focus on your past experiences or analytical questions that test your technical skills, strategy questions assess your ability to think like a CEO: balancing business goals, user needs, and market realities to chart a path forward.
In this comprehensive guide, I’ll walk you through exactly how to tackle these questions using a proven framework that will help you structure your thinking and impress your interviewers.
Why are Product Strategy Questions Asked?
Before we dive into the “how,” let’s understand the “why.” Product strategy questions aren’t designed to trick you or test your ability to memorize frameworks. They serve several critical purposes:
What Interviewers Are Actually Evaluating:
Strategic Thinking: Can you see the big picture? Do you understand how different pieces of a business fit together? Can you think several moves ahead like a chess player?
Business Acumen: Do you understand fundamental business concepts like revenue models, competitive dynamics, market sizing, and growth levers? Can you speak the language of executives?
Structured Problem-Solving: When faced with ambiguity, can you break down complex problems into manageable components? Do you have a systematic approach to decision-making?
Trade-off Analysis: Real product decisions involve trade-offs. Can you identify them, articulate them clearly, and make defensible choices?
User-Centric Mindset: While thinking about business, do you keep the user at the center of your decision-making process?
How These Questions Differentiate Strong PM Candidates:
Average candidates jump straight to solutions. They might say, “Yes, Netflix should enter gaming because it’s a big market.”
Strong candidates demonstrate structured thinking. They clarify the business context, understand user needs, explore multiple options, and make a recommendation backed by clear reasoning.
The difference isn’t about having the “right” answer (often there isn’t one), but about showing you can think strategically and make informed decisions.
Real-World Relevance:
As a PM, you’ll constantly face strategic questions:
Should we build this new feature or focus on improving what we have?
Which market segment should we prioritize for expansion?
How should we respond to a competitor’s new product launch?
Should we partner with another company or build the capability ourselves?
Your ability to answer strategy questions in interviews directly correlates with your ability to make good decisions on the job.
How to Answer Product Strategy Questions?
The key to acing product strategy questions is having a reliable framework. Not because interviewers want you to robotically apply a formula, but because a framework helps you:
Organize your thoughts under pressure
Ensure you don’t miss critical considerations
Communicate your thinking clearly
Demonstrate structured problem-solving
Use The BUS Framework for Product Strategy Questions
The BUS Framework is the best suited for tackling product strategy questions. It’s simple, memorable, and comprehensive:
B - Business Objectives: Start by understanding what the company is trying to achieve. What are their goals, constraints, and success metrics?
U - User Needs: Identify who the users are and what problems you’re solving for them. No business succeeds without creating value for users.
S - Solutions & Strategy: Generate strategic options, evaluate them, and make a clear recommendation with an implementation approach.
Why This Framework Works:
The BUS framework is comprehensive yet simple. It forces you to consider both the business and user perspectives before jumping to solutions - a common pitfall for many candidates. The three elements are deeply interconnected:
Your business objectives define what success looks like
Your user needs determine whether people will actually use your product
Your solutions must serve both business goals and user needs to be viable
Think of it as a three-legged stool. Remove any leg, and the strategy falls apart.
How the Elements Interconnect:
A successful strategy sits at the intersection of all three:
A solution that meets user needs but doesn’t serve business objectives will fail commercially
A solution that serves business objectives but ignores user needs won’t gain adoption
Understanding both business and users without generating actionable solutions leaves you stuck in analysis paralysis
Now, let’s dive deep into each step of the framework with a real example.
Step 1: Business Objectives (B)
The first step in answering any product strategy question is understanding the business context. This isn’t just about showing you can ask good questions - it’s about ensuring you’re solving the right problem.
What to Cover
When exploring business objectives, you need to understand:
Company’s Mission and Vision: What is the company’s core purpose? What are they trying to achieve in the world? Understanding the mission helps ensure your strategy aligns with the company’s values and long-term direction.
Company’s Goals and Constraints: What is the company trying to achieve? Are they focused on growth, profitability, market share, or entering new markets?
Current Business Context: What’s the company’s current position? Are they a market leader defending their position or a challenger trying to disrupt? What challenges are they facing?
Success Metrics: How will we measure success? Is it revenue growth, user engagement, market share, or something else?
Key Stakeholders: Who cares about this decision and what are their priorities? (executives, investors, partners, etc.)
Key Questions to Ask
Before diving into your analysis, clarify the context by asking questions like:
“What are the company’s strategic priorities right now?”
“What resources and constraints should I consider?” (budget, timeline, technical capabilities, regulatory environment)
“What does success look like for this initiative?”
“What’s the timeline we’re working with—is this a 6-month, 1-year, or 5-year strategy?”
“Are there any particular challenges the business is facing that this strategy should address?”
Pro Tip: Pick 2-3 most critical questions based on the specific scenario. Your goal is to show you think about business context, not to conduct a 20-minute interrogation.
Example for Business Objectives: “Should Netflix Enter Gaming Market?”
Let’s walk through how you’d apply this to a real question.
Your Response Might Sound Like:
“Before I dive into whether Netflix should enter gaming, let me make sure I understand Netflix’s business objectives and current situation.
Understanding Netflix’s Mission and Strategic Direction:
Netflix’s mission is to entertain the world with stories that connect people. They aim to be the leading streaming entertainment service globally. This mission suggests they’re focused on:
Entertainment value and customer satisfaction
Global reach and cultural relevance
Content that brings people together
Understanding Netflix’s Position:
Netflix is primarily a streaming entertainment platform with around 250 million subscribers globally. Based on my understanding:
Primary Business Goal: Subscriber growth and retention in an increasingly competitive streaming market
Key Challenge: Market saturation in developed countries and intense competition from Disney+, HBO Max, Apple TV+, and others
Current Strategy: Heavy investment in original content to differentiate and retain subscribers
Relevant Business Metrics for This Decision:
If Netflix enters gaming, we’d likely measure success through:
Subscriber metrics: New subscriber acquisition and reduced churn
Engagement metrics: Time spent on platform, daily/monthly active users
Retention: Do gaming users have lower cancellation rates?
Revenue impact: Direct revenue from gaming or indirect through subscription retention
Strategic Context:
Netflix seems to be exploring gaming as a way to:
Increase engagement and time spent on platform (more “sticky” platform)
Differentiate from competitors (most don’t offer gaming)
Create another revenue stream or retention mechanism
Leverage existing IP (Stranger Things, Squid Game) across multiple formats
Mission Alignment: Gaming could align with Netflix’s mission of “entertaining the world” by:
Expanding the definition of entertainment beyond passive watching
Creating interactive stories that connect people
Building deeper engagement with beloved Netflix IP
However, it requires ensuring gaming feels like a natural extension, not a distraction from their core entertainment mission
Constraints to Consider:
Netflix has limited gaming expertise in-house
Significant investment required (game development is expensive)
Gaming is culturally different from video production
Platform capabilities need development (download functionality, multiplayer infrastructure, etc.)
Does this align with your understanding, or are there other business objectives I should consider?”
Why This Works:
Notice several things about this response:
It demonstrates knowledge of Netflix’s business
It identifies relevant metrics upfront
It acknowledges both opportunities and constraints
It shows strategic thinking about WHY Netflix might consider gaming
It remains open to clarification rather than making assumptions
Step 2: User Needs (U)
Once you understand the business objectives, shift your focus to users. A strategy might make perfect business sense but fail if it doesn’t solve real user problems or if users don’t want it.
What to Cover
When analyzing user needs, consider:
Target User Segments:
Who are the primary users we’re targeting?
How would you segment the user base? (demographics, behaviors, needs, psychographics)
Which segments are most valuable or strategic?
Are there underserved segments we should consider?
Why it matters: Not all users are the same. Different segments have different needs, behaviors, and value to the business. Generic “all users” thinking leads to mediocre products that don’t serve anyone particularly well.
User Pain Points and Desires:
What specific problems or frustrations do users experience?
What jobs are users trying to get done?
What would delight users beyond solving basic problems?
What emotional needs are at play? (status, belonging, achievement, convenience)
Where are the biggest gaps between current experience and desired experience?
Why it matters: Understanding the “why” behind user behavior helps you design solutions that actually resonate. Features that solve real pain points get adopted; features that don’t, languish.
User Behavior and Preferences:
How do users currently solve this problem or meet this need?
What are their existing habits and routines?
What devices, platforms, or contexts do they use?
How much effort are they willing to invest?
Are they price-sensitive or value-focused?
What’s their level of technical sophistication?
Why it matters: Behavior change is hard. Strategies that swim against the current of user behavior face adoption challenges. Understanding existing patterns helps you design solutions that fit naturally into users’ lives.
Market Size and Opportunity: Market Size and Opportunity
How many users have this need or problem?
What’s the Total Addressable Market (TAM)?
What portion can we realistically capture? (Serviceable Addressable Market)
Is this a growing, stable, or declining market?
How urgent or critical is this need for users?
Why it matters: Even if users love something, if the market is too small or the need isn’t urgent, it won’t move the needle for the business. You need to validate that the opportunity is worth pursuing.
Competitive Alternatives
What alternatives or substitutes do users currently have?
What do users like or dislike about existing solutions?
Where are competitors strong or weak?
What would it take for users to switch to our solution?
Are users satisfied with current options, or actively looking for something better?
Why it matters: You’re rarely building in a vacuum. Understanding the competitive landscape helps you identify differentiation opportunities and realistic adoption barriers.
Example for User Needs: “Should Netflix Enter Gaming Market?” -
Your Response Might Sound Like:
“Now let me think about Netflix users and their potential gaming needs.
User Segmentation:
Netflix’s user base isn’t monolithic. For gaming, I’d segment them into:
Casual Gamers (Largest segment, ~40-50% of subscribers)
Play mobile games occasionally during commutes or downtime
Not hardcore gamers, but enjoy simple, engaging games
Value: Easy entertainment without commitment
Non-Gamers (~30-40% of subscribers)
Never or rarely play games
Might be intimidated by complex games
Value: Passive entertainment (watching)
Dedicated Gamers (~10-20% of subscribers)
Already have gaming subscriptions (Xbox Game Pass, PlayStation Plus)
Want AAA titles, multiplayer experiences
Value: High-quality, immersive gaming experiences
User Needs Analysis:
For each segment, the needs differ:
Casual Gamers:
Pain Point: Gap in entertainment between episodes or when nothing interesting to watch
Desire: Quick, easy entertainment that doesn’t require special equipment or skills
Current Alternatives: Mobile games, social media scrolling, YouTube
Opportunity: Keep them engaged on Netflix platform instead of going elsewhere
Non-Gamers:
Pain Point: Sometimes can’t find anything to watch, leave the platform
Desire: Simple, story-driven experiences
Current Alternatives: Browse endlessly or leave Netflix
Opportunity: Interactive storytelling (like Bandersnatch) that feels familiar
Dedicated Gamers:
Pain Point: Paying for multiple subscriptions
Desire: Comprehensive entertainment platform
Current Alternatives: Xbox Game Pass, PlayStation Plus, Steam
Opportunity: Bundle value, but hard to compete with established platforms
Key Insights:
Biggest Opportunity: Casual gamers who want lightweight entertainment without leaving Netflix
User Behavior: Netflix users are in a ‘lean back’ mode—they want entertainment served to them. Gaming typically requires ‘lean forward’ engagement. This is a behavioral shift we’d need to manage.
Competitive Landscape:
Xbox Game Pass offers 100+ games for $10-15/month
Apple Arcade offers 200+ games for $5/month
Mobile games are free (ad-supported)
Netflix would need differentiation beyond just having games
Unique Netflix Advantage:
Massive subscriber base to leverage
Strong IP (Stranger Things, Squid Game, The Witcher) that could translate to games
Existing relationship and trust with users
No need to acquire users—they’re already on platform
User Adoption Concerns:
Will Netflix users even think to open Netflix for gaming?
Device constraints: Netflix is often watched on TVs, but gaming might need mobile/tablet
Perception: Netflix = video streaming, might be confused by gaming offerings
Competition for time: Are we cannibalizing video watching?
Based on this analysis, the most promising user segment appears to be casual gamers looking for lightweight, story-driven games tied to Netflix IP. This aligns with Netflix’s strengths and doesn’t require competing head-to-head with Xbox or PlayStation.”
Why This Works:
Shows sophisticated segmentation rather than treating all users the same
Identifies specific pain points and desires for each segment
Acknowledges competitive alternatives
Recognizes Netflix’s unique advantages
Raises legitimate concerns about adoption
Leads naturally to solution ideation
Step 3: Solutions & Strategy (S)
Now comes the moment where you synthesize your business and user understanding into actionable strategy. This is where you show your strategic chops by generating options, evaluating them, and making a clear recommendation.
What to Cover
In the solutions phase, you should:
1. Generate Strategic Options
Brainstorm multiple distinct approaches (aim for 3-4 viable options)
Consider different levels of investment and commitment
Think about build vs. buy vs. partner approaches
Explore both incremental and transformational strategies
Don’t fall in love with one solution too quickly—stay open-minded
Why it matters: Generating multiple options shows strategic thinking depth and gives you alternatives if your first choice isn’t viable. It also demonstrates you can think creatively about different paths to achieve the same goal.
2. Evaluate Alternatives Using Clear Criteria
Define decision criteria upfront (e.g., strategic fit, time to market, cost, risk, user impact)
Compare options objectively across these criteria
Use frameworks like pros/cons lists, scoring matrices, or 2x2 grids
Consider both quantitative factors (ROI, market size) and qualitative ones (brand fit, team capability)
Be explicit about which criteria matter most and why
Why it matters: Clear evaluation criteria make your reasoning transparent and defensible. This shows you can make objective decisions rather than going with gut feel or personal preference.
3. Consider Implementation Approach
Think through the “how”—what would execution actually look like?
What resources are required? (team, budget, time, technology)
What’s the sequencing and phasing? (quick wins vs. long-term bets)
What organizational changes or capabilities need to be built?
What dependencies or blockers exist?
How would you validate assumptions before full commitment?
Why it matters: Great strategies fail in execution. Showing you think about implementation demonstrates you’re not just a strategist but someone who can actually deliver results.
4. Make a Clear Recommendation
Choose one option and state it clearly
Explain your reasoning—why is this the best path forward?
Show how it serves both business objectives and user needs
Be confident but not dogmatic
Explain what would change your mind
Why it matters: PMs need to make decisions under uncertainty. A clear recommendation shows decisiveness and conviction while remaining intellectually honest.
5. Address Risks and Trade-offs
Every strategy has downsides—acknowledge them proactively
Identify the biggest risks and failure modes
Explain specific mitigation strategies
Be explicit about what you’re giving up or deprioritizing
Show you understand opportunity costs
Why it matters: Risk awareness shows maturity. Interviewers want to see you’re realistic about challenges, not naively optimistic. Discussing trade-offs shows you understand that strategy is about choices.
6. Define Success Metrics and Iteration Plan
Specify how you’ll measure success (2-4 key metrics)
Include both leading indicators (early signals) and lagging indicators (ultimate outcomes)
Set target benchmarks and timeframes
Explain how you’d learn and iterate
Identify decision points where you’d pivot or double down
Why it matters: This shows you’re data-driven and think about learning loops. Good PMs set up experiments where they can learn quickly and adjust course.
Pro Tip: In the solutions phase, you’re demonstrating your ability to synthesize business and user insights into actionable strategy. This is where you show your strategic chops - balance analytical thinking with creativity, confidence with humility, and ambition with pragmatism.
Example for Solutions & Strategy: “Should Netflix Enter Gaming Market?”
Your Response Might Sound Like:
“Based on my analysis of Netflix’s business objectives and user needs, let me explore different strategic options for entering gaming.
Strategic Options:
Option 1: Partner with Existing Game Studios (Licensing Model)
Approach: License popular games from studios, make them available on Netflix
Examples: Partner with indie game developers, mobile game publishers
Users play existing games through Netflix subscription
Pros:
Fastest time to market (3-6 months)
Lower upfront investment
Less operational complexity
Can test gaming hypothesis quickly
Leverage established game quality
Cons:
Limited strategic control
No IP ownership
Margins compressed by licensing fees
Differentiation harder (games available elsewhere)
Harder to integrate with Netflix IP
Cost Estimate: $50-100M/year in licensing fees
Option 2: Acquire Gaming Companies
Approach: Buy 1-2 gaming studios outright
Get talent, technology, and game portfolio
Full control over game development
Pros:
Strategic control over roadmap
Own IP and talent
Can build Netflix-exclusive games
Leverage synergies with original content
Long-term strategic asset
Cons:
Very high upfront cost ($500M-$2B+)
Integration challenges (different culture)
Long time to see ROI
High risk if gaming strategy fails
Distraction from core business
Cost Estimate: $500M-$2B for acquisition + integration
Option 3: Build In-House Gaming Capability
Approach: Hire gaming talent, build internal gaming studio
Develop games from scratch
Complete control over experience
Pros:
Full strategic control
Can optimize for Netflix platform
Own all IP
Builds long-term competitive moat
Can innovate freely
Cons:
Slowest option (12-24 months to first games)
Highest risk (no proven gaming capability)
Difficult to attract top gaming talent
Very expensive to build from zero
Steep learning curve
Cost Estimate: $200-500M initial investment, 2+ years
Option 4: Interactive Content & Casual Games Only (Hybrid Approach)
Approach: Focus on lightweight, story-driven interactive experiences
Expand on “Bandersnatch” model
Simple mobile games tied to Netflix IP
Partner for mobile casual games
Pros:
Plays to Netflix’s storytelling strength
Lower technical complexity
Natural extension of current offering
Users already familiar with interactive content
Can use existing IP effectively
Moderate investment
Cons:
Limited market opportunity vs full gaming
May not satisfy gaming enthusiasts
Still requires gaming expertise
Unclear if casual games drive retention
Cost Estimate: $100-300M/year
Evaluation Criteria:
Let me evaluate these options against key criteria:
My Recommendation: Start with Option 4 (Hybrid Approach), with Option 1 for Quick Wins
Here’s my strategic recommendation:
Phase 1 (Months 0-6): Quick Wins through Licensing
Partner with 3-5 indie mobile game developers
Launch with 10-15 casual games on mobile
Focus on Netflix IP-adjacent games (Stranger Things puzzle game, etc.)
Goal: Test user engagement, validate hypothesis
Investment: $50-75M
Success Metrics: 10%+ of subscribers try games, 2%+ become regular users
Phase 2 (Months 6-18): Double Down on Interactive Content
Invest heavily in interactive storytelling
Develop 4-6 “Choose Your Own Adventure” style experiences tied to hit shows
Build lightweight casual games tied to top Netflix properties
Start small acqui-hires of mobile game talent (not full studios)
Investment: $200-300M
Success Metrics: 5%+ of users engage with interactive content monthly
Phase 3 (18+ months): Strategic Decision Point Based on Phase 1 & 2 results, decide whether to:
Acquire a gaming studio (if metrics are strong)
Continue hybrid approach (if moderate success)
Pivot strategy (if weak adoption)
Why This Approach:
Balances Business Objectives:
Lower risk than big acquisition upfront
Can show traction to investors before major investment
Builds optionality for future decisions
Doesn’t distract from core business initially
Serves User Needs:
Targets casual gamers (biggest addressable segment)
Stays close to Netflix’s core strength (storytelling)
Low friction for users (mobile-first)
Leverages familiar IP
Mitigates Key Risks:
Risk: “Users won’t engage with games on Netflix” → Test with licensing before big investment
Risk: “Gaming talent won’t want to work for Netflix” → Start small with acqui-hires
Risk: “Can’t compete with Xbox/PlayStation” → Don’t try to; focus on casual gaming
Risk: “Cannibalize video watching time” → Monitor engagement metrics closely
Implementation Roadmap:
Month 0-3: Foundation
Form small gaming partnerships team (10-15 people)
Negotiate licensing deals with indie developers
Build basic gaming infrastructure (download capability, game launcher)
Design integration into Netflix UI
Month 3-6: Launch & Learn
Soft launch in 2-3 test markets
Launch 10 licensed games
Heavy analytics on user behavior
Iterate on UX based on feedback
Month 6-12: Scale & Invest
If metrics positive, expand globally
Increase licensing deals to 25-30 games
Start interactive content development
Begin acqui-hires of gaming talent
Month 12-18: Strategic Fork
Evaluate full market performance
Make strategic decision on next phase
Either increase investment or pivot
Success Metrics:
Primary Metrics:
Gaming engagement rate (% of subscribers who play)
Time spent gaming vs. watching (should be additive, not cannibalistic)
Retention impact (do gaming users have lower churn?)
Secondary Metrics:
New subscriber attribution to gaming
Revenue impact (direct or indirect)
Cost per engaged gaming user
Target Benchmarks (End of Year 1):
15% of subscribers try gaming at least once
5% engage monthly with games
10% reduction in churn for gaming users vs. non-gaming users
Net positive impact on subscriber growth
Trade-offs and Considerations:
What We’re Giving Up:
Not going for hardcore gaming market (leaving $$ on table)
Slower than all-in acquisition approach
Risk that competitors move faster
What We’re Gaining:
Lower risk, can pivot if needed
Learn what works before big investment
Stay focused on core competency
Build capability gradually
Key Risks Still Remaining:
Market Perception: “Netflix is copying [others]”
Mitigation: Focus on unique Netflix IP integration
Execution Risk: Gaming is new territory
Mitigation: Hire experienced gaming leads, start small
Platform Fragmentation: Different capabilities on TV vs. mobile
Mitigation: Mobile-first strategy initially
Competitive Response: What if Disney+ or HBO Max launch gaming?
Mitigation: First-mover advantage in streaming + gaming space
Final Recommendation:
Yes, Netflix should enter the gaming market, but strategically and incrementally. Start with licensed casual games and interactive content to test hypotheses, then scale investment based on results. This approach balances the growth opportunity with risk management while staying true to Netflix’s core strength in storytelling.
The gaming market is too big and too strategic (for engagement and retention) to ignore, but rushing in with a massive acquisition would be premature and risky. A phased approach allows Netflix to build conviction before making billion-dollar bets.”
Why This Works:
Generates multiple distinct options (not just yes/no)
Uses clear evaluation criteria
Makes a specific, defensible recommendation
Shows phased thinking (not all-or-nothing)
Addresses risks proactively
Includes concrete metrics and timeline
Demonstrates business maturity
Balances business and user considerations
Common Mistakes Candidates Make ⚠️
Even with the BUS framework, candidates often stumble. Here are the most common pitfalls to avoid:
Jumping directly to solutions without understanding the problem - Always clarify business context first.
Ignoring user needs or making assumptions - Design strategies for real users, not imaginary ones.
Failing to structure their thinking - Use the BUS framework to stay organized under pressure.
Not considering trade-offs - Every decision has downsides. Acknowledge and address them.
Lacking clarity in final recommendation - Make a clear, defensible choice. Avoid “it depends.”
Forgetting to define success metrics - Always explain how you’ll measure if the strategy works.
Being too generic or theoretical - Tailor your answer to the specific company and context.
Not thinking out loud - Narrate your reasoning so interviewers can follow your process.
Over-relying on frameworks - Use BUS as a guide, not a rigid script. Adapt to the question.
Poor time management across framework steps - Balance time between B, U, and S appropriately.
Awareness of these mistakes is half the battle. When you catch yourself making one, acknowledge it and course-correct during the interview.
Pro Tips for Success ✅
Here are tips that will elevate your performance:
Think out loud throughout your answer. Don’t go silent while you think. Narrate your reasoning process.
Be structured but remain conversational. Yes, use the BUS framework, but don’t sound like a robot reciting steps.
Ask for interviewer input at key decision points. “Does this business objective make sense?” or “Would you like me to go deeper on any of these options?” This shows collaboration skills and prevents you from going down the wrong path.
Stay flexible and adapt based on feedback. If the interviewer pushes back or seems more interested in a different direction, adjust. Being coachable is a highly valued trait in PMs.
Practice time management: aim for ~20-25 minutes total. Here’s a rough time allocation:
Business Objectives: 4-6 minutes (clarify context, define metrics)
User Needs: 4-6 minutes (segment users, analyze needs)
Solutions & Strategy: 10-12 minutes (generate options, evaluate, recommend)
Buffer for discussion: 5+ minutes
Show enthusiasm and genuine curiosity about the product. Energy matters. Interviewers want to work with PMs who are passionate about building great products. Let your excitement show.
Use real-world examples when relevant. If you can reference how other companies solved similar problems or relate personal experiences, it adds credibility and shows market awareness.
Focus on the “why” behind your decisions. Don’t just say what you’d do—explain the reasoning behind each choice.
Make trade-offs explicit. Every strategy has downsides. Acknowledge them proactively: “Here’s what we’re gaining... and here’s what we’re trading off.”
End strong with a clear recommendation. Confidence in your final recommendation (while remaining open to feedback) leaves a lasting positive impression.
Practice with a timer. Do mock interviews and time yourself on each section. This builds muscle memory for pacing.
Record yourself practicing. Watch or listen to your practice sessions. You’ll catch verbal tics, rambling, or areas where you lose clarity.
Study real products and think about their strategies. Reverse-engineer existing strategic decisions using the BUS framework:
Why did Netflix enter gaming?
What business objectives were they trying to achieve?
Which user segments were they targeting?
What strategic options did they have?
Remember: interviewers aren’t expecting perfection. They want to see how you think, how you communicate, and how you’d approach real PM challenges. Authenticity combined with structure is the winning formula.
Practice Questions for Product Strategy
Now it’s time to put the BUS framework into practice. Below are 35 practice questions across different product domains. For each question, try to:
Spend 2-3 minutes clarifying and understanding business objectives
Spend 2-3 minutes analyzing user needs
Spend 10-15 minutes on solutions, evaluation, and recommendation
Time yourself to simulate interview pressure
Consumer Products
Should Spotify add podcast video features?
Consider: Spotify’s position vs. YouTube, creator preferences, user behavior
How would you grow Instagram Reels adoption?
Consider: Competition with TikTok, current user behavior, creator incentives
Should YouTube launch a short-form podcast platform?
Consider: Market positioning, competition with Spotify, user expectations
How should Apple Music compete with Spotify?
Consider: Apple’s ecosystem advantages, pricing strategy, differentiation
Should TikTok enter the music streaming market?
Consider: Core strengths, user base, competitive landscape
Social & Communication
Should WhatsApp add a stories feature for business accounts?
Consider: Business user needs, consumer expectations, monetization
How would you improve Discord’s monetization strategy?
Consider: Community dynamics, competing free options, user willingness to pay
Should LinkedIn launch a freelancer marketplace?
Consider: Competition with Upwork/Fiverr, LinkedIn’s unique advantages, user fit
How would you grow Snapchat in the 30+ demographic?
Consider: Current perception, competing platforms, behavior changes
Should Twitter/X create a long-form content platform?
Consider: Competition with Medium/Substack, user expectations, creator needs
E-commerce & Marketplace
Should Amazon enter the social commerce space?
Consider: Amazon’s strengths, social commerce trends, user behavior
How would you help Etsy compete with Amazon Handmade?
Consider: Differentiation strategy, seller ecosystem, buyer expectations
Should eBay launch a subscription service?
Consider: Value proposition, competitive alternatives, buyer/seller dynamics
How would you grow Shopify’s market share in enterprise?
Consider: Current positioning, enterprise needs, competitive enterprise solutions
Should Instacart expand into restaurant delivery?
Consider: Operational complexity, market dynamics, existing competitors
SaaS
Should Slack add project management features?
Consider: Core product focus, integration vs. building, Asana/Monday.com
How would you position Notion against Microsoft 365?
Consider: Different user segments, switching costs, feature parity
Should Zoom enter the asynchronous video messaging market?
Consider: Loom as competitor, user needs, brand positioning
How would you expand Salesforce into the SMB segment?
Consider: Pricing strategy, complexity issues, market dynamics
Should Dropbox build AI-powered document editing?
Consider: Google Docs competition, core competency, user needs
Travel & Transportation
Should Airbnb launch a travel experiences marketplace?
Consider: Current offerings, competition, host ecosystem
How would you help Uber compete with local ride-sharing apps in India?
Consider: Local dynamics, pricing sensitivity, regulatory environment
Should Expedia create a subscription travel service?
Consider: Value proposition, user booking patterns, competitive alternatives
How would you grow Lyft’s market share against Uber?
Consider: Differentiation strategy, driver/rider dynamics, geographic focus
Should Booking.com enter the corporate travel management space?
Consider: B2B vs. B2C dynamics, competition with Concur/SAP, value proposition
Health & Wellness
Should Peloton expand into nutrition coaching?
Consider: Brand fit, market opportunity, existing competitors
How would you position Calm against Headspace?
Consider: Differentiation, pricing, content strategy
Should MyFitnessPal add telehealth consultations?
Consider: Regulatory complexity, user needs, revenue model
How would you grow adoption of Apple Health among seniors?
Consider: Usability challenges, value proposition, care coordination
Should Strava enter the fitness equipment market?
Consider: Brand extension, capital requirements, community impact
Education
Should Duolingo launch corporate language training?
Consider: B2B vs. B2C model, enterprise needs, sales approach
How would you help Coursera compete with Udemy?
Consider: Quality vs. quantity, pricing models, target learners
Should Khan Academy add live tutoring services?
Consider: Mission alignment, business model, scalability
How would you expand Skillshare into enterprise learning?
Consider: Content type, pricing strategy, competitor analysis
Should Quizlet enter the test prep market for standardized exams?
Consider: Market dynamics, content quality requirements, competitive landscape
Subscribe for more PM interview guides, product strategy frameworks, and career advice delivered to your inbox.
About the Author: Amit Mutreja is a product leader building AI-native products at the intersection of consumer tech, SaaS, and agentic AI. He writes about product strategy, large language models, and the craft of building from 0→1. Amit currently leads product at HexaHealth, and previously built at Snapdeal and BYJU’S. He also mentors aspiring and experienced PMs on career growth, product thinking, and cracking PM interviews.