Product Strategy

Question 1

Give an example of a vertical in which building an MVP may not be a good idea.

Answer 1

Healthcare, since the minimum standards for quality and reliability may be very high.

Question 2

What are the two principal risks of building an MVP, assuming you are in a vertical where the quality bar isn’t intrinsically high?

Answer 2

• You build an MVP that is missing the core value proposition (e.g. a car without seats)
• Customers lose trust in your ability to deliver a quality product

Question 3

Why is bundling sometimes advantageous to both consumers and producers?

Answer 3

Variance in demand makes setting an optimal price difficult, which increases deadweight loss (customers who want the product but not enough to pay market price for it). Bundling reduces this variance, so the deadweight loss is smaller.

Question 4

What does “the power of defaults” refer to?

Answer 4

The idea that simply by making some action the default choice for the user and making them opt-out if they don’t want to do it, you increase the chances that users take that action.

Question 5

What are the five tactics a company can use to defend itself against competitors?

Answer 5

• Copy
• Acquire
• Cede
• Minimize
• Regulate