Product Strategy Framework: The 5 Top-Performing Frameworks to Consider in 2024

We get it — defining a product strategy can feel overwhelming. 

The solution is having a solid framework in place that makes navigating key decisions far less daunting. But, you may be asking yourself:

“With so many frameworks to choose from, how do I know I’m selecting the right one for my startup?”

In this guide, we’ll help you answer that question and the many others that may arise during your product strategy framework selection process.

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We’ll cover:

• What is a product strategy framework?
• What are the benefits of a product strategy?
• Which are the most common product strategy frameworks?
• Key elements of a winning product strategy
• An easy five-step guide to developing your product strategy
• Common mistakes to avoid
• Next steps to get started

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Let’s get started with a quick definition.

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What is a product strategy framework?

A product strategy is the blueprint for structuring and refining your approach to product development. 

Think of it like a company-wide compass, making sure your whole team understands what your product is designed to do, who it’s designed for and each of the key levers your team needs to pull to reach that coveted product-market fit.

A product strategy framework helps you figure out what your product strategy should look like, complete with best-practices and heuristics for common product problems.

These frameworks don’t just hand you a strategy; they offer the scaffolding for crafting one that's robust, adaptable, and built on the learnings of the entire product management industry.

In short - If you’re developing a product strategy, you need a product strategy framework.

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Why use a product strategy framework?

Not convinced? Here’s what you can expect from the right framework:

• It makes building a product strategy quicker and easier. By providing a predefined structure, frameworks eliminate the need to reinvent the wheel when it comes to crafting your own product strategy.
• It gives you a clear outline of how to execute your product strategy. Frameworks typically help you develop an actionable product strategy, helping you execute and iterate, and giving you mental models to fall back on when things don’t go to plan.
• It gives you insight into what you should focus on and when. It’s easy to miss the forest from the trees when trying to figure out a full product strategy from scratch. Frameworks help you separate what matters from what doesn’t in your strategic planning.
• It gives you a frame of reference that has worked for other successful businesses. Many popular frameworks are based on proven business principles and have been successfully implemented before. By sticking to these frameworks you’re learning from the successes — and failures — of others. 
• It saves you valuable time better spent refining the solution itself. Frameworks are designed to help you get up and running fast by streamlining the decision-making process. Your team will be able to focus on developing and iterating rather than endless strategizing. 

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5 common product strategy frameworks

Here’s a quick rundown of 5 highly popular product strategy frameworks with recommendations and real-life examples: 

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The Lean Startup method

The Lean Startup method is all about getting your product out there fast, learning faster, and changing course when you need to. This is often called the build-measure-learn loop.

Picture this: instead of spending ages perfecting your product, you launch a basic version — your MVP (Minimum Viable Product) — to see if people are actually into it. It’s like saying, "Here's my idea. What do you think?", gathering feedback, and then taking it from there.

Learning from this feedback is crucial. It tells you if you're on the right track or if it's time to tweak things. If something's not working, you shift gears without ditching all the hard work you've already put in. 

So, the Lean Startup method isn’t just a way to build products; it’s a strategy that keeps you agile and ready to adapt your product development and refinement to what your customers really want. 

• Best for: Startups and established companies launching new products in fast-paced industries with rapidly evolving technologies.
• Example: Dropbox used this method to refine its file-sharing service based on user feedback. They first launched with a simple video showcasing the product's value prop, garnered massive signups, and then iterated on features based on user needs.

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The Form, Educate, and Embed framework

The Form, Educate, and Embed (FEE) framework is all about making sure your product isn’t just a passing fad for users but that it sticks around for the long haul. It’s perfect for when you want to introduce something new and make sure it really lands.

Form is where you first roll out your product. You’re sharing the what, why, and how in a way that grabs attention and starts a conversation. It’s about lighting that initial spark of interest and getting people to lean in, eager to hear more.

Educate dives deeper. This phase is all about giving people the knowledge and tools they need to get on board. You’re mixing up how you teach — think interactive workshops or direct hands-on experiences — to make sure the idea hits home and remains relevant. 

Embed is where things get real. This phase is all about weaving your solution into both your organization and your user’s daily operations. It’s the support system that turns a "maybe" into a "must-have." Essentially, you want to make this new change feel like it’s always been there.

• Best for: SaaS companies aiming to boost user adoption and integration of new features or products.
• Example: Slack adopted an approach similar to FEE, initially engaging users with its promise to reduce email clutter, and then educating them on its features. This ensured Slack became an indispensable tool within team communication workflows to this day. 

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Value Proposition Canvas

This framework helps you define a product or service's value proposition for a specific customer segment. It helps your business identify customer needs, pains, and desired outcomes — then maps how your offering addresses them.

The actual hands-on process is rather simple — you jot down the tasks your customers are trying to nail, the hassles they're fed up with, and the wins they're chasing. Then, you line up your product’s features against these points.

The result? You’re completely in tune with your customers. By turning the spotlight on what they really want, you can tweak — and sometimes pivot — your strategy with ease. It's not about guessing what will work; it's about knowing what will have a tangible impact.

• Best for: New companies defining their product or service, or established companies looking to refine their offerings for a specific target audience.
• Example: Airbnb utilized the Value Proposition Canvas early on. They identified the needs of travelers (finding unique accommodations) and hosts (monetizing unused space), and created a platform that addressed both. 
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Blue Ocean Strategy

The Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne focuses on creating new market spaces free from competition. This strategy emphasizes innovation and differentiation to capture uncontested market demand.

The idea is to stop fighting over existing customers and start identifying opportunities for growth that haven’t been tapped into yet. 

At the heart of this strategy is the concept of value innovation. This means you’re combining innovation with value, making your solution both new and highly desirable. 

With this leap in value, you’re aiming to make the competition irrelevant by showing you’re playing in a different league altogether. 

• Best for: Established companies and startups seeking to disrupt existing industries or offer entirely new product categories.
• Example: Cirque du Soleil used the Blue Ocean Strategy to reimagine the circus experience. They eliminated traditional elements like performing animals and aimed for a more artistic and theatrical presentation, creating a new market for high-end circus entertainment.

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Five Forces Framework

Developed by Michael Porter, this framework analyzes competitive pressures within an industry. These forces include the threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and competitive rivalry. Let’s go over the five forces real quick. 

• The threat of new entrants brings new challenges into the market, shaking up the status quo and urging businesses to improve their barriers to entry and stay on their toes in terms of innovation. Strengthen your brand and customer loyalty to avoid this threat. 
• The bargaining power of suppliers can set the pace of your growth by impacting your company’s cost and squeezing your margins if you’re too dependent on said suppliers. Make sure you diversify your list of potential collaborators to avoid this pitfall.
• The bargaining power of buyers enables customers to demand lower prices and better deals. You’ll want to enhance the uniqueness of your offering and thus create more value for your customers to reduce buyer power to a manageable level. 
• The threat of substitute products or services offers customers different ways to fulfill their needs, potentially driving them away from your solution. Focus on and leverage your differentiators to reduce the appeal of substitutes. 
• The intensity of competitive rivalry has a direct impact on your piercing, innovation, and marketing strategies. You’ll want to focus on niche markets or specialize your offering to stand out.

By understanding these five forces, businesses can get a clearer view of their competitive advantage and potential profitability.

• Best for: Established companies evaluating their market position and potential for new products or services.
• Example: Companies across numerous industries use the Five Forces Framework. For instance, Uber considered the bargaining power of drivers and competition from traditional taxis when entering the market.

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Key elements of an effective product strategy

Here are three key elements you need to keep in mind if you want your product strategy to actually work:

• Vision and mission alignment: This one is pretty clear cut — a winning product strategy seamlessly aligns with your company's overall vision and mission. This means your product roadmap and goals must contribute to the greater purpose of the organization. 
  
  Beware — without alignment, product efforts may seem misguided or be at odds with the direction your company is going in.

• Understanding your market: A deep knowledge of your target market and customer base is more than crucial for any successful product growth strategy framework. Identify key customer segments, their needs, and find opportunities for differentiation. 
  
  Go the extra mile — conduct market research through surveys, interviews, and data analysis to gain insights into your target customer’s behaviors, motivations, and pain points. 

• Setting clear and measurable objectives: Establishing specific and measurable goals is a must. Objectives could include increasing customer retention by a specific percentage, reducing customer support tickets, or generating a target amount of revenue. 

Clear objectives provide direction for your product roadmap and help evaluate the success of your efforts. They should align with your company's key performance indicators (KPIs) so you’re making organization-wide progress at all times.

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Additional elements to keep in mind

Other important elements include:

• Developing a product roadmap with specific initiatives and timelines
• Implementing a system for measuring outcomes and performance
• Fostering communication and alignment across your organization
• Adapting based on feedback and insights gained from customers and the market

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Step-by-step guide to developing your product strategy

One of the key elements of a winning product strategy is having a clear set of steps to follow for development and execution. Here’s an easy five-step process you can follow:

1. Define your vision and understand your market:

• Establish a product vision: Craft a clear and concise statement outlining your product's purpose and its role in achieving your company's mission. This vision statement should ideally inspire and motivate your team.
• Research the market: Analyze customer demographics, needs, behaviors, and pain points. Conduct surveys, interviews, and competitor analysis to identify market gaps and opportunities to increase the success of your market penetration efforts. 

2. Develop your value proposition and find your key differentiators:

• Clearly define your value proposition: Articulate how your product solves customer problems and delivers unique benefits. Ask yourself, “What specific value will my product offer that others don't?” 
• Identify what sets you apart: Familiarize yourself with your competitors' strengths and weaknesses to identify areas where your product can stand out. Focus on unique features or areas of the market where you could be gaining a competitive edge.

3. Outline your objectives and roadmap:

• Set SMART goals: Define clear, Specific, Measurable, Achievable, Relevant, and Time-bound objectives for your product. These objectives should — of course — align with your product vision and contribute to your overall business goals.
• Create a product roadmap: Prioritize features based on customer needs and your specific business goals. Remember — this roadmap should be flexible and adaptable to incorporate new potential insights.

4. Implement, measure, and adapt:

• Execute your strategy: Begin development and launch based on your roadmap.
• Track KPIs constantly: Collect data on metrics relevant to your current objectives, such as user acquisition, retention, and revenue growth. Your KPIs may not be the same as your competition’s. Define what success looks like for your company at its current stage. 
• Strive for continuous improvement: Analyze data and customer feedback regularly to identify areas for improvement. Try to always be prepared to adapt your strategy based on market response and your KPIs.

5. Communicate and align internally:

• Communication is king: Actively communicate your product strategy, vision, and roadmap with all stakeholders, including team members and leadership. Transparency at all stages of the process promotes trust in your vision and fosters collaboration.
• Shared ownership: Clearly define how each and every team member contributes to achieving your desired goals. This creates a sense of ownership and accountability across your organization that directly translates into a better product. 

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Common mistakes to avoid

Avoiding common pitfalls is essential if you don’t want your product strategy to crash and burn. Some mistakes to steer clear of include:

• Biting off more than you can chew: Don't shoot for the moon right off the bat. Set achievable goals based on your resources and build momentum with early wins.
• Communication silos: Ensure everyone's on the same page. Open communication across teams is key to avoiding confusion and wasted effort.
• Building a product in a vacuum: Customers are your compass. Regularly gather feedback and incorporate it into your strategy to avoid creating a product nobody wants.
• Flying blind: You need a roadmap — this is not a guessing game! Define KPIs to track progress and adapt your strategy based on what the data tells you.
• Sticking to a sinking ship: Markets are changing all the time. Build mechanisms to regularly assess your strategy and make adjustments to stay ahead of the curve.

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Next steps

Now that you’ve learned about the different product strategy frameworks out there, it’s time to talk about the key element that’s going to help you develop and refine your product strategy: Data.

Data isn't just a part of the process; it's the foundation that supports informed decision-making, 

If you want to get valuable and actionable insights, you’ll want to do what most successful companies do but might not outright tell you — run experiments. 

This is where Eppo comes into the mix. 

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Eppo is a complete experimentation and feature management platform that allows you to integrate data-driven insights into every phase of your company’s product management strategy framework’s implementation process. Here’s how to get started with Eppo: 

Your journey with Eppo starts with a quick demo. Once you’re on board and registered, our warehouse-native platform effortlessly connects with your current data warehouses like Snowflake, Databricks, Redshift, BigQuery, and more. 

After that, use Eppo’s SDKs to directly implement feature flagging and A/B testing, facilitating experimentation and helping you gather valuable insights into your product strategy framework’s effectiveness. 

With Eppo fully integrated, you’re ready to leverage its entire suite of tools for a streamlined product strategy development and execution: 

• Strategic clarity and goal alignment: Think of Eppo as your strategy co-pilot, helping you map out clear hypotheses, define critical metrics, and align every initiative with your key business goals. It helps you ensure your efforts are set up for real business impact.
• From planning to execution with ease: With Eppo, you can run the gamut from setting up different testing environments to applying advanced feature flagging techniques, ensuring that your product evolves in a controlled, accurately measurable way.
• Smooth sailing through implementation: Launch new features or strategies with confidence, thanks to our real-time metrics and diagnostics. Eppo helps you spot and iron out any kinks early, ensuring your product enhancements hit the ground running.
• Turning data into gold: With Eppo’s top-tier statistical engine, complex data transforms into clear, actionable insights. Plus, with the ability to dive deep into your results through slice-and-dice explorations, you’re always ready to make informed decisions.

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Book a Demo and Explore Eppo.