Why Good Strategy Assumes Your Product is Bad
In business, optimism can cloud judgment, and organizational inertia can prevent us from asking hard questions. We pour our hearts into developing and commercializing products, convinced they’ll be met with enthusiasm. Yet, a crucial lesson—sometimes learned the hard way—is that good strategy assumes the product is bad.
Yes, you read that right. The foundation of a truly effective strategy isn't built on the assumption that your product is exceptional but rather on the premise that it might not be. Here’s why this mindset shift is key to unlocking a winning strategy.
Case In Point: Assuming a product is best-in-class can make strategic imperatives (SI) bland and ineffective. In the pharmaceutical industry, it’s common to see the first SI of a brand strategy written as some version of “Establish (Product X) as the first-line choice in {Therapeutic Area Y).”
It’s curious that brands across various disease states often use this and similar imperatives to guide tactics. While this dictates what the business wants to achieve, it fails to provide direction on how to do it or why it won’t happen. It’s an imperative, but it’s not strategic.
The Danger of Overconfidence
Believing a product is superior often leads to overlooking its flaws. We focus on strengths, dismissing or underestimating why customers might not buy it. This overconfidence blinds us to critical feedback that could inform our strategy.
By assuming the product is bad, we force ourselves to ask tough questions:
Answering these questions isn’t pessimism; it’s a strategic imperative. Only by understanding potential pitfalls can we craft a strategy that addresses them, maximizing the resonance of the product’s real strengths among customers.
The Power of Anticipating Challenges
Anticipating why a product might fail allows us to proactively address issues in our strategy. This might involve refining the product, but more often, it means adjusting how we position it, communicate its value, and reach target customers.
By starting with the assumption that the product is bad, we shift focus from selling what we want to solving what the customer needs.
Embracing the Customer’s Perspective
A good strategy is customer-centric. It requires us to step into the shoes of those we serve. By assuming the product is bad, we align ourselves more closely with the customer’s experience, establishing the use case for the product. We see it not through the lens of the creator but through the eyes of the buyer, with all their skepticism and concerns.
This mindset encourages a deeper market understanding, fosters empathy with customers, and leads to a strategy that resonates with the audience.
Turning Weaknesses into Strengths
Assuming the product is bad doesn’t mean settling for mediocrity. It’s about identifying weaknesses and turning them into opportunities. Perhaps the product isn’t as feature-rich as competitors—this could be spun as simplicity and ease of use. Maybe the brand isn’t well-known—this could be an opportunity to position it as a hidden gem or a fresh alternative.
The Key Takeaway: Strategy Begins Where the Product Ends
The product is just the beginning. Good strategy starts where the product ends—by tackling reasons it might fail in the market. This approach isn’t about pessimism; it’s about realism. It’s about facing challenges head-on, understanding objections deeply, and crafting a strategy that not only addresses these issues but turns them into strengths.
In the end, the most effective strategies anticipate failure and work tirelessly to overcome it. So, the next time you’re crafting a strategy, start with this assumption: your product is bad. You might just unlock insights that lead to your greatest success.