“Product Strategy draws from the ultimate vision of the product. It states where the product will end up” (MaRS, 2017)
An organisation sets up a product strategy as it determines the direction of their product. Product strategy is important as it forms the basis for executing product releases; the strategy enables an organisation to focus on the specific target market and features. The strategy will describe who the product is for and why people would want to buy and use it, what the product is and why it stands out in the market sector, what the organisation goals are and why it is worthwhile for an organisation to invest in it.
The market identifies the target customers and users of the product and the people who are most likely to buy and use it, where the features and innovation are, the aspects of the product that are crucial to address the main problem or create the primary benefit and make people chose it over competitors. The organisation goals explain how the product will benefit an organisation: creating revenue, and helping to sell other products. By having clear and defined organisation goals, this enables Key Performance Indicators (KPIs) to be compiled to measure the performance of the product.