Suppose that Facebook Groups usage is going up while Facebook Stories usage is going down at the same rate. Is this a good thing or a bad thing for Facebook and Meta at large?

Thank you for providing such a comprehensive framework for addressing this product strategy question. I'll structure my response according to the guidelines you've outlined, focusing on demonstrating deep product thinking and leadership. I'll approach this from a first-person perspective as if I'm directly addressing the interviewer.

Introduction

The strategic problem at hand is the diverging usage trends between Facebook Groups and Facebook Stories, with Groups usage increasing while Stories usage is decreasing at the same rate. Our task is to determine whether this is beneficial or detrimental for Facebook and Meta as a whole.

Key business objectives tied to this product strategy include user engagement, platform stickiness, and overall ecosystem health. These factors directly impact Meta's advertising revenue and long-term user retention.

I'll address this challenge by first clarifying our strategic goals, then conducting a market and competitive analysis. From there, I'll define a product vision and roadmap, prioritize initiatives, outline an execution plan, establish key metrics, and finally address risk management.

Step 1

Clarify the Strategic Goals (3-4 minutes)

• Based on the shift in user behavior, I'm sensing that we might be at a crossroads in terms of product focus and resource allocation. Could you help me understand how this aligns with our current strategic priorities for Facebook and Meta overall?

Why it matters: Determines whether we should lean into the Groups trend or try to revitalize Stories. Expected answer: Focus on building stronger communities and deeper connections. Impact on approach: Would prioritize enhancing and expanding Groups functionality.

• Given the diverging trends between Groups and Stories, I'm curious about our target audience segmentation. Are we seeing different demographic or psychographic profiles gravitating towards these features? How does this align with our user acquisition and retention goals?

Why it matters: Helps tailor our strategy to specific user segments and their needs. Expected answer: Younger users prefer Stories, while Groups attract a broader age range. Impact on approach: Would consider a dual-track strategy to serve both audience segments.

• Considering the competitive landscape, particularly with the rise of TikTok and other short-form video platforms, how do we view the strategic importance of Stories in our product mix?

Why it matters: Influences whether we should invest in revitalizing Stories or pivot resources elsewhere. Expected answer: Stories remain important for user engagement and competing with other platforms. Impact on approach: Would explore ways to differentiate and improve the Stories experience.

• In terms of monetization, how do Groups and Stories currently contribute to our revenue model, and how might this shift impact our financial projections?

Why it matters: Helps balance user experience improvements with business sustainability. Expected answer: Stories currently generate more ad revenue, but Groups have untapped potential. Impact on approach: Would investigate monetization opportunities within Groups while optimizing Stories ad experience.

Based on these strategic considerations, I'll proceed with the following key assumptions:

1. Building stronger communities is a top priority for Meta.
2. We need to serve both younger users (Stories) and a broader demographic (Groups).
3. Competing in the short-form video space remains strategically important.
4. There's a need to balance immediate revenue (Stories) with long-term engagement potential (Groups).