Should Opendoor prioritize expanding its instant offer service to more markets or focus on improving offer accuracy in existing markets?

Introduction

The trade-off question at hand is whether Opendoor should prioritize expanding its instant offer service to more markets or focus on improving offer accuracy in existing markets. This scenario involves balancing growth with product quality, a common challenge for scaling tech companies. I'll analyze this trade-off by examining the business context, user impact, technical considerations, and potential outcomes.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Opendoor's instant offer service is a core product. Can you confirm if this is correct, and how it fits into the overall business strategy?

Why it matters: Helps prioritize the trade-off against broader company goals Expected answer: Confirmation of its importance to the business model Impact on approach: Would influence resource allocation and urgency of decision

• Business Context: Based on the current market conditions, I'm thinking expansion might be critical for growth. How does our current market share and competitive landscape look?

Why it matters: Informs the urgency of expansion vs. improvement Expected answer: Details on market position and competitive pressure Impact on approach: Would affect the balance between growth and quality focus

• User Impact: Considering user trust is crucial for this service, how has our offer accuracy been perceived in existing markets?

Why it matters: Helps gauge the need for accuracy improvements Expected answer: Insights on user satisfaction and trust levels Impact on approach: Would influence the priority of accuracy improvements

• Technical: I'm curious about our current technical capabilities. How scalable is our offer accuracy model across different markets?

Why it matters: Determines feasibility of expansion without compromising accuracy Expected answer: Information on model adaptability and performance Impact on approach: Would affect the feasibility of simultaneous expansion and improvement

• Resource: Thinking about our team structure, do we have separate teams for expansion and accuracy improvement, or would this be a resource allocation decision?

Why it matters: Helps understand the resource trade-offs involved Expected answer: Details on team structure and capacity Impact on approach: Would influence the feasibility of pursuing both options simultaneously