Should Bukalapak prioritize expanding our product catalog or improving the existing user experience?

Introduction

The trade-off between expanding Bukalapak's product catalog and improving the existing user experience is a critical decision that will shape our platform's future. This scenario involves balancing growth through product diversity against enhancing customer satisfaction and retention. I'll analyze this trade-off by examining our current product state, potential impacts, key metrics, and experimental approaches to inform a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: Based on Bukalapak's position as an e-commerce platform in Indonesia, I'm thinking we might be facing increased competition. Could you share any recent market shifts or competitor moves that are influencing this decision?

Why it matters: Helps contextualize the urgency and strategic importance of this trade-off. Expected answer: Increased competition from regional players expanding their catalogs. Impact on approach: Would emphasize the need for differentiation in our strategy.

• Business Context: Considering our revenue model, I assume we operate on a commission-based structure. Can you confirm our primary revenue streams and their current performance?

Why it matters: Aligns our decision with financial objectives and identifies potential growth areas. Expected answer: Commission-based model with additional revenue from advertising and premium services. Impact on approach: Would influence whether we prioritize catalog expansion or user experience based on revenue potential.

• User Impact: I'm curious about our user segments. Can you provide insights into our most valuable customer segments and their behaviors?

Why it matters: Ensures our decision caters to key user groups and addresses their needs. Expected answer: Mix of price-sensitive buyers and premium shoppers with different browsing and purchasing patterns. Impact on approach: Would tailor our strategy to balance the needs of different user segments.

• Technical Feasibility: Regarding our current infrastructure, how scalable is our platform for significant catalog expansion?

Why it matters: Determines the technical constraints and potential costs of expansion. Expected answer: Moderately scalable with some upgrades needed for major expansion. Impact on approach: Would influence the timeline and resource allocation for catalog expansion.

• Resource Allocation: Can you give me an overview of our current team structure and any budget constraints for this initiative?

Why it matters: Helps assess the feasibility of executing either option effectively. Expected answer: Limited resources with competing priorities across departments. Impact on approach: Would shape the scope and phasing of our chosen strategy.