Before we answer the question of product strategy, let's understand what strategy is? It is a plan of action designed to achieve a long-term or overall aim. Simply put, strategy is how (plan and guidelines) you will move from your current state to the desired state.

Strategy is how we go from A to B

We need to go from A→B. A is our current state, and B is our future or desired state. In the example below, let's take a business situation.

The current state (A) is our current business situation.

Our current state can be defined by our:

• Current business metrics
• Market
• Problems
• Competition
• Constraints
• Team & Resources

Our future state or desired state (B) is the ideal situation in which we want to be.

Our future state can be defined by our:

• Future business metrics: The results of moving from A→B
• Market in future state (e.g. our revenue is now X, we have market share of Y)
• Opportunities that we have because we are at B
• State of competition