A strong product strategy ensures that your team focuses on what truly matters, differentiates your product from competitors and delivers real value to customers. It helps you make better decisions, allocate precious resources wisely and increases your odds of success.

So, what does great product strategy look like? And how can you craft one that sets your company up for sustainable growth?

What’s the difference? Company vs. product strategy🔗

Early-stage founders often don’t see a distinction between their company and product strategy – and they’d be right. If your entire business revolves around one product then your company and product strategy are usually the same thing. But as your company grows, this changes. You may introduce multiple products or add service components. At this point, it’s useful to separate the two, with the company strategy providing the overall view of how all of your portfolio works together to drive success, with a product strategy per product supporting this.

“People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are.” Steve Jobs.

Jobs slashed Apple’s product lines down to just four. This radical simplification made it easier for customers to understand which product to choose for their needs. It allowed Apple to concentrate it’s resources, making each product vastly superior. The result? Apple went from a $1 billion loss to a £309 million profit in just one year. Soon after, it launched the iMac, iPod and iPhone.

Differentiation: Standing Out in a Crowded Market🔗

Competing on features alone is a losing game. The best products create their own market rather than fighting for space in an existing one.

In 2006, the gaming industry was dominated by Microsoft Xbox and Sony PlayStation, both locked in a battle for power and realism. More graphics, more processing speed—this was the industry’s playbook for years.

Then, Nintendo did something radical. Instead of joining the arms race, they changed the game entirely.

The Wii’s graphics were unimpressive. The gameplay was basic. But its motion-control system introduced a whole new way to play. Instead of targeting hardcore gamers, Nintendo made gaming social, intuitive, and fun for all ages. Retirement homes bought Wiis. Families played together. Wii captured an audience that previous consoles had never reached. As a result, Nintendo sold over 100 million Wii consoles—outpacing both competitors.

I once met a founder who added a share button to their software, expecting it to drive viral growth. But no one used it. Why? Because sharing didn’t provide any meaningful value to users.

Before building a product or feature, use research and experiments to understand:

- What problem does this solve?

- How big and frequent is that problem really?

- Does this create real value for the customer that they’d be willing to pay for?

The most successful products start with clear customer outcomes and then experiment with the best way of solving them. If your product doesn’t make your customers’ lives meaningfully better, no amount of marketing or talented sales execs will save it.

Making Strategy Your Growth Engine🔗

A well-crafted product strategy doesn’t just guide your team; it multiplies your chances of success. It helps you allocate resources wisely, differentiate effectively, and stay laser-focused on delivering value.

As a founder, your role is to choose the best possible path, commit to it, and have the discipline to stay the course…or pivot when the evidence tells you it’s time.

Get this right, and your product won’t just compete: it will lead.