Build a Workplace Chat Challenger to Slack: Target Segment, Wedge and MVP

Quick Overview

A product design and strategy question: design a workplace communication product that can compete with Slack. It tests competitor analysis, choosing a segment Slack underserves, defining a differentiated first version, planning adoption against high switching costs, and picking success metrics and risks.

Build a Workplace Chat Challenger to Slack: Target Segment, Wedge and MVP

Company: Microsoft

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

Design a new product that competes with Slack, the workplace messaging tool organized around team channels. Explain which customers you would go after, what your product would do differently, what you would build first and how you would measure success. ```hint Where Slack is weakest Teams that already run on Slack keep their history, integrations and habits there, so switching is costly. Look for the users or jobs Slack serves poorly today, where a newcomer has a real reason to be chosen. ``` ### Clarifying Questions - Are you building this as a startup, or inside a large software company like Microsoft that could bundle it with existing office tools, sign-in and enterprise sales? - What does winning mean: revenue, active users, or protecting a broader product suite? - Which market is in scope: small businesses, large enterprises, a particular industry, or workers who are not at a desk? - Should the product pull teams away from Slack, or reach teams that do not use a chat tool yet? ### What a Strong Answer Covers - An assessment of Slack's strengths and weaknesses, and of why teams find it hard to switch - A chosen segment and job to be done, with the reason a newcomer can win there - A differentiated product with a prioritized first version, rather than a feature-by-feature copy - An adoption plan that deals with network effects inside a company, migration of history, and working alongside Slack - Success metrics and risks, including how Slack would respond ### Follow-up Questions - Slack ships your main differentiating feature within a year. What advantage do you still have? - One team in a company wants your product, but the rest of the company stays on Slack. How do you make that work? - How would you price and package the product against Slack?

Overview: A product design and strategy question: design a workplace communication product that can compete with Slack. It tests competitor analysis, choosing a segment Slack underserves, defining a differentiated first version, planning adoption against high switching costs, and picking success metrics and risks.

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Microsoft
May 28, 2024
mediumProduct ManagerOtherProduct Design & Strategy
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Design a new product that competes with Slack, the workplace messaging tool organized around team channels.

Explain which customers you would go after, what your product would do differently, what you would build first and how you would measure success.

Clarifying Questions Guidance

  • Are you building this as a startup, or inside a large software company like Microsoft that could bundle it with existing office tools, sign-in and enterprise sales?
  • What does winning mean: revenue, active users, or protecting a broader product suite?
  • Which market is in scope: small businesses, large enterprises, a particular industry, or workers who are not at a desk?
  • Should the product pull teams away from Slack, or reach teams that do not use a chat tool yet?

What a Strong Answer Covers Guidance

  • An assessment of Slack's strengths and weaknesses, and of why teams find it hard to switch
  • A chosen segment and job to be done, with the reason a newcomer can win there
  • A differentiated product with a prioritized first version, rather than a feature-by-feature copy
  • An adoption plan that deals with network effects inside a company, migration of history, and working alongside Slack
  • Success metrics and risks, including how Slack would respond

Follow-up Questions Guidance

  • Slack ships your main differentiating feature within a year. What advantage do you still have?
  • One team in a company wants your product, but the rest of the company stays on Slack. How do you make that work?
  • How would you price and package the product against Slack?