What Is Product Strategy?
Why Read this?
Smart product strategy starts with business goals, not tech.
Here’s how to build the right thing, not just anything.
Tesh Srivastava
April 29, 2025
15
min read
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Start With the Why
Let’s start with a simple question: what is your ‘product’?
It seems like an obvious question, but it’s one that many overlook when starting out—especially when they are consumed by the excitement of bringing an idea to life. At Daedalus, we can help you avoid that pitfall.
Product strategy is about identifying the product you need so as to deliver the business goal you are aiming for. That’s it. It is not about a roadmap or managing product features; it is about working backward from your business objectives to determine the right product to help achieve them.
The fundamental question you need to ask when developing your product strategy is: "What is our primary business goal, and what do we need to produce to achieve that goal?"
You might be surprised how often people jump straight into building without considering whether the product they are creating actually matches their long-term goals. A lot of startups we work with assume that a CTO automatically understands product strategy—after all, tech is what builds the product, right? But that’s not always the case. We have had plenty of clients come to us with a “tech roadmap” but fail to answer one key question: “Why are you building this?” Without a product strategy, there is no real reason for the tech they have chosen. The direction of the business is unclear, and the tech becomes a solution looking for a problem.
That’s where we come in. At Daedalus, we don’t just focus on the product. We focus on the bigger picture—your business goal. From there, we work with you to figure out what you actually need to build to achieve that goal in the most effective way possible. Is it a web app, a mobile app, a platform, or something entirely different? Our job is to help you determine the best answer to that question (and then to help you make it a reality).
The "what we need to produce" question doesn’t have to immediately be answered by "tech." The shape of the thing—the “how”—is secondary at this stage. It is more important to understand the business needs that will guide the development of your product.
Let’s take an example. You say, “I want an AI chatbot!”
Well, why do you want an AI chatbot?
Because AI is cool, right?
But is it the best way to achieve your business goal? Maybe your true business need is to collect better data, in which case perhaps an AI chatbot isn’t actually the answer at all. By asking these probing questions, we help you get to the core of what you actually need and help you determine how to start working toward that goal in the most efficient, cost-effective way possible.
In short, the key to product strategy is focusing on how you can start generating revenue as quickly and efficiently as possible. The “tech” part of the equation is the least important piece of the puzzle, and too many companies forget that.
The first step is always asking: what do you actually want to do?
Bad: "I want to make money."
A clearly defined goal is crucial for product strategy. Simply wanting to "make money" isn’t a strategy. You need to define exactly how you want your business to succeed. What does that success look like, and what is the timeline to achieve it?
Let’s say your goal is: “We want to redefine how consumers access and manage unsecured debt in relation to their day-to-day finances.” That’s a product strategy you can sink your teeth into—there’s a clear mission and measurable outcomes to work toward.
Contrast that with a goal like: "I want to build a new Consumer Facing Bank and make it better than the others out there." While admirable, it is not specific enough to be actionable.
A product strategy must have a realistic timeframe, based on where you are in your journey. If you are a startup with limited resources, setting a 5-year product strategy may be overly ambitious. But if you are innovating within a 200-year-old institution, a longer, more drawn-out process might be the right approach.
The timeframe of your goals should reflect your stage in the commercial, product, and tech journey. For example, for a pre-revenue startup, focusing on a product roadmap that spans 12 months is practical. For a larger company, a 3–5-year roadmap might be more suitable.
What operational infrastructure do you have in place? This is an often-overlooked area in product strategy. Understanding what you have—and what you need—helps you avoid the common pitfall of ignoring the complexities of building and scaling your product.
Bad: “I don’t know.”
Whether security, compliance, or regulation, operational infrastructure directly impacts your product strategy. These factors will shape the way your product is developed, especially if you operate in a regulated space such as finance or healthcare.
Understanding the competitive landscape is a must. It can be tempting to believe that your idea is so unique no one has ever thought of it, but that is rarely actually the case. Even if you are creating something new, understanding the market and analyzing competitors is essential.
Bad: “I don’t know, and I don’t care.”
Look at the products that already exist. What are their weaknesses? Where can you offer a better solution? If you are truly breaking new ground, it is still useful to know why no one else has attempted your solution and what comparable products can teach you about the space.
You also need to ask, “Who is going to use this product?” Getting clarity on who your users are and understanding their workflow is a key step in shaping your product strategy.
Bad: “I don’t know.”
A deep understanding of your users—and the stakeholders in their ecosystem—helps you build a product that people actually need and want to use. This analysis can also help you avoid the trap of creating a product that’s “cool” but ultimately unnecessary because users are already doing the job with an existing solution.
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