Strategy
Strategy is the focused plan for where a company will play, how it will compete, and why it will win.
What makes a good strategy?
Good strategy works by focusing energy and resources on one—or a very few—pivotal objectives whose accomplishment will lead to a cascade of favorable outcomes.
Strategy is fundamentally about making choices:
- Where you will play: Which markets, customers, or problems you'll focus on
- How you will compete: Your unique approach or advantage
- Why you will win: The reasons your approach will succeed
Without this focus, companies end up trying to do everything, which means they do nothing particularly well.
What is the common strategy problem?
Many companies lack a defined strategy because executives, teams, and investors want to leave their options open. They want to place multiple bets to achieve their financial goals, like a diversified investment portfolio.
But the lack of focused strategy creates real tension for product teams. They need focus and clarity to wisely invest their finite time and resources.
Where does product strategy live?
Product strategy happens in the opportunity space—it's the result of assessment and prioritization decisions about which opportunities to pursue.
The opportunities teams choose to go after are what:
- Distinguish them from competitors
- Allow them to carve out a unique space in the market
- Reflect their company's unique DNA
Two companies in the exact same space will pick different opportunities. It's not that one opportunity is bigger than the other—it's that those companies have completely different DNA, and so they filter opportunities differently.
How do teams use strategy to filter opportunities?
Teams should use their company's mission, vision, and strategy as a filter when assessing opportunities.
For example:
- Google will choose opportunities aligned with their strategy and DNA
- Apple will choose different opportunities aligned with theirs
- Both operate in similar spaces, but their strategic filters lead to different choices
This is where the heart of product strategy lives—in the opportunity selection decisions teams make every day.
Why does opportunity selection matter?
The opportunity solution tree helps ensure teams are considering enough opportunities before making strategic choices. Product strategy emerges from these series of assessment and prioritization decisions.
Since opportunity decisions are two-way door decisions, teams can test whether they chose the right opportunity through prototyping and experimentation. If they learn they didn't choose the best opportunity, they can walk back up the tree and choose another.
Learn more:
- Prioritize Opportunities, Not Solutions
Related terms:
- Assessing Opportunities
- Opportunity Solution Tree
- Target Opportunity
Last Updated: October 25, 2025