You are a product manager of Oculus. Only the physical product exists. How will you go about designing the strategy?

Certainly, I'll provide a detailed, strategic answer to the product strategy problem for Oculus, demonstrating deep product thinking and leadership. I'll use a first-person perspective as if I'm directly addressing the interviewer.

Introduction

Thank you for presenting this intriguing product strategy challenge. As I understand it, we're tasked with designing a comprehensive strategy for Oculus, starting from the foundation of an existing physical product. Our key business objectives will likely include market penetration, user adoption, and establishing a strong ecosystem for virtual reality experiences.

To address this challenge, I'll outline my strategic approach in the following steps:

1. Clarify our strategic goals
2. Conduct a market and competitive analysis
3. Define our product vision and roadmap
4. Prioritize strategic initiatives
5. Develop an execution plan and resource allocation strategy
6. Establish metrics and key performance indicators
7. Implement risk management and contingency planning

Let's begin by aligning on our strategic goals.

Step 1

Clarify the Strategic Goals (3-4 minutes)

• Based on the current VR market dynamics, I'm sensing that Oculus might be in a growth stage, balancing market expansion with profitability. Could you help me understand where we are in the product lifecycle and how that aligns with our company's current priorities?

Why it matters: This determines whether we prioritize market share or profitability. Expected answer: Growth stage, focusing on market expansion while maintaining unit economics. Impact on approach: I would focus on scalable growth strategies while building sustainable competitive advantages.

• Considering the rapidly evolving VR landscape, I'm curious about our primary target audience. Are we focusing on gaming enthusiasts, enterprise applications, or a broader consumer market?

Why it matters: This influences our feature prioritization and marketing strategies. Expected answer: Primary focus on gaming with growing interest in enterprise applications. Impact on approach: I would prioritize gaming experiences while developing a separate track for enterprise solutions.

• Given the hardware-centric nature of VR, I'm wondering about our approach to content and software ecosystem development. How are we balancing internal content creation with third-party developer engagement?

Why it matters: This affects our resource allocation and platform strategy. Expected answer: Focus on building a robust developer ecosystem with select flagship internal content. Impact on approach: I would emphasize developer tools and support while creating key internal experiences to showcase the platform's capabilities.

• Considering the competitive landscape, particularly with big tech players like Sony and potentially Apple entering the market, how are we positioning Oculus in terms of pricing and feature set?

Why it matters: This informs our differentiation strategy and value proposition. Expected answer: Aiming for a premium experience at a competitive price point. Impact on approach: I would focus on unique features and ecosystem advantages to justify our positioning.

Based on these insights, my key strategic assumptions are:

1. We're in a growth stage, prioritizing market expansion.
2. Our primary focus is on gaming, with an emerging emphasis on enterprise applications.
3. We're building a strong developer ecosystem while creating select flagship content.
4. We're positioning as a premium brand with competitive pricing.