How to Build a Product Strategy Stack? [Detailed Guide]

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In this blog, we will discuss the importance of product strategy for product managers and professionals while providing a step-by-step guide on how to build an effective strategy stack that aligns with your company's mission, strategy, goals, and roadmap.

For product managers and others, a product strategy stack is like a toolbox. It’s not just a framework; it’s a flexible set of elements designed to align with the organization’s vision, strategy, and goals.

What is a product strategy stack?

A product strategy stack is a grouping of elements that together form a strategy. It provides a detailed view of each component that contributes to a product strategy.

Typically, this stack includes several layers:

  • Company Strategy: The company’s approach to achieving its goal.
  • Product Strategy: The rationale for how a product will support the company’s overall strategy.
  • Product Goals: The daily and quarterly outcomes of the product roadmap, tracking the progress of the Product Strategy.


What is a product strategy framework?

A product strategy framework is a structured model used to develop and implement a product strategy. It guides decision-making throughout a product development project.

Examples of product strategy frameworks include the Product-Market Fit framework, the Lean Startup methodology, the Ansoff Matrix, and the 4Ps of marketing. These frameworks also include elements like market analysis, competitive analysis, and value proposition definition.

Product Strategy Stack vs. Product Strategy Framework

A Product Strategy Stack is a collection of tools, technology, and resources that are used to formulate and execute a product strategy. A Product Strategy Framework is a systematic model that guides the creation and implementation of a product strategy.
The product strategy stack is about the ‘what’ (the tools and resources).The product strategy framework is about the ‘how’ (the approach and methodology).
It includes components like market research tools, competitive analysis frameworks, and product roadmaps.It’s more about the theoretical approach to product strategy, focusing on defining the product’s vision, goals, target market, and value proposition.

Key components of a product strategy stack 

  • Market Research: This involves studying consumer segments, market trends, demographics, habits, and preferences. It helps understand the market, identify opportunities, and validate product ideas.
  • User Personas: To create detailed user personas, develop fictional representations of target users, considering their goals, activities, challenges, and motivations. Read  how to create a user journey map in 9 steps for a better understanding of the user journey
  • Competitive Analysis: This involves assessing competitors’ strengths, weaknesses, market position, product features, pricing strategies, and market share. This research helps create strategies to gain a competitive advantage, differentiate the product, and identify market gaps.
  • Roadmap: A product roadmap shows the product’s strategic direction and path. It guides development work and clarifies the product’s future development.

Benefits of using a product stack

Product managers need guidance, and a product strategy stack can provide that.  According to 35%  of product teams, they desire a clearer goal and vision to improve teamwork, communication, and product development.

  • Organized Decision-Making: A product strategy stack helps make decisions systematically. It breaks down large goals into manageable stages and decision points. This structure ensures decisions are made thoughtfully, not impulsively.
  • Team Alignment: Cross-functional teams use a shared product strategy stack to coordinate their efforts towards common goals. It serves as a reference point, helping everyone understand the rationale behind decisions and reducing disagreements over objectives and goals. This alignment fosters teamwork and synergy.
  • Adaptability: A product strategy stack’s adaptability allows for adjustments to changing market conditions. Businesses can alter strategies within the stack in response to new information. Product managers can use the product strategy stack to communicate, prioritize, and execute initiatives.
  • Risk Mitigation: A product strategy stack helps identify and assess potential risks early on by considering factors like competitive positioning, market analysis, and technical viability. This proactive risk identification allows teams to create mitigation measures, reducing the chance of costly mistakes or setbacks.

How to Build a Product Strategy Stack?

Setting Priorities

  • Comply with the Plan: Ensure efforts align with the broader product strategy, corporate goals, and user needs by referring to the product strategy stack.
  • Analysis of Effect vs. Effort: Evaluate initiatives for their potential impact and the effort required to implement them. Focus on low-effort, high-impact projects for proper prioritization.
  • Data-Driven Decisions: Prioritize projects based on measurable outcomes and align them with strategic goals using metrics/KPIs from the stack.

For example, Airbnb prioritized entering new markets using its strategy stack. They identified areas with strong demand and less competition through user feedback, market research, and competitive analysis, aligning with their expansion strategy.

Efficient Group Interaction

  • Shared Understanding: Use the product strategy stack as a communication tool to ensure everyone understands the reasoning behind decisions and actions.
  • Regular Updates: Share updates on the product strategy stack regularly to keep cross-functional teams aligned and provide decision-makers with perspective.
  • Clear Roadmaps: Use the product roadmap component of the stack to clarify the timeline and strategic direction of product projects.

For instance, Slack successfully communicated its product strategy stack by making its roadmap public. This allowed users and stakeholders to better understand the reasoning behind planned features.

Implementing Product Initiatives

  • Iterative Development: Make continuous improvements to the product based on user feedback by using the stack’s iteration loops and user input.
  • Adaptability: Leverage the stack’s flexibility to adjust or modify plans in response to changing customer demands or market conditions.

As an example, Spotify regularly iterated on its product using its strategy stack. They enhanced their recommendation algorithms and personalized user experiences by collecting user feedback and analyzing KPIs, increasing user engagement.

Best practices for building product strategy stacks

  • Alignment with Company Goals: Ensure each stack component aligns directly with the company’s mission, vision, and strategic objectives.
  • Cross-Functional Collaboration: Involve stakeholders from all departments to gather diverse perspectives and insights, ensuring comprehensive coverage of the strategy stack.
  • Data-Driven Decision-Making: Use metrics and data to guide strategic decisions and ensure measurable outcomes by validating and informing stack components.
  • Iterative Improvement: Promote a culture of continuous improvement by regularly reviewing and revising the stack in response to new information and changing market conditions.
  • Transparency and Communication: Ensure everyone in the company understands the components, reasoning, and implications of the strategy stack by communicating it effectively.

Examples of Product Strategy Stacks

 1. Amazon


Amazon’s strategy stack includes customer data analysis, market trends, competitive intelligence, user-centric design, and a comprehensive product roadmap.


They prioritize customer needs by using data analytics and user feedback to continually enhance user experiences and adjust their services.


2. Netflix


Netflix’s strategy stack involves user behavior analysis, market trends, content recommendation algorithms, and a data-driven approach to content creation and acquisition.


They attract new subscribers and retain existing ones by using their stack to produce original content, personalize user experiences, and curate content based on user preferences.

3. Tesla


Tesla’s stack integrates technological viability studies, market demand analysis, creative design, and sustainable energy concepts.


They use their stack to drive innovation in electric vehicles, leveraging insights from market demand and technological advancements to create sustainable transportation solutions.

A product stack can be seen as a roadmap that not only provides direction but also evolves as the product is developed, ensuring alignment with both customer demands and corporate goals.
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