Choose a New Industry for Facebook to Expand Into and Defend the Bet

Quick Overview

A Meta product strategy question asking a PM candidate to recommend the next vertical Facebook should expand into. It tests setting a clear objective, comparing candidate markets against Facebook's real advantages, committing to one, and supporting it with an entry plan, success metrics and risks.

Choose a New Industry for Facebook to Expand Into and Defend the Bet

Company: Meta

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

As a product manager at Meta, recommend the next vertical Facebook should expand into. Commit to one choice and explain why it beats the other options you considered. ```hint Start from what Facebook already has Before naming industries, list the assets a newcomer could not copy. The strongest vertical is the one where those assets matter most, not simply the biggest market. ``` ### Clarifying Questions - Is the main goal new revenue beyond ads, deeper engagement from existing users, or progress on Meta's mission of bringing people together, and how should I weigh them? - Does "vertical" mean an industry Facebook would serve end to end, such as healthcare or travel, or can it be a new product category inside the app, the way Marketplace and Dating were? - Should the bet live inside the Facebook app, or can it span Meta's other apps such as Instagram and WhatsApp? - Am I looking for something that can launch within a year, or a multi-year bet? ### What a Strong Answer Covers - A clear objective for the expansion and evaluation criteria tied to it: user demand, Facebook's right to win, business fit, and trust and regulatory risk - A short list of candidate verticals compared on those criteria, with a reason for dropping each one not chosen - A single recommendation grounded in specific Facebook assets such as the friend graph, Groups, Pages, Messenger and Marketplace - A first product and entry sequence, with a north-star metric and guardrails - Honest risks, including Meta's trust and privacy history and incumbent competitors, with mitigations ### Follow-up Questions - What evidence after the first year would make you shut the vertical down? - How would you solve the cold-start problem on the supply side of your chosen vertical? - Why build it rather than partner with or acquire an existing player?

Overview: A Meta product strategy question asking a PM candidate to recommend the next vertical Facebook should expand into. It tests setting a clear objective, comparing candidate markets against Facebook's real advantages, committing to one, and supporting it with an entry plan, success metrics and risks.

Meta logo
Meta
Jan 20, 2025
mediumProduct ManagerOtherProduct Design & Strategy
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As a product manager at Meta, recommend the next vertical Facebook should expand into. Commit to one choice and explain why it beats the other options you considered.

Clarifying Questions Guidance

  • Is the main goal new revenue beyond ads, deeper engagement from existing users, or progress on Meta's mission of bringing people together, and how should I weigh them?
  • Does "vertical" mean an industry Facebook would serve end to end, such as healthcare or travel, or can it be a new product category inside the app, the way Marketplace and Dating were?
  • Should the bet live inside the Facebook app, or can it span Meta's other apps such as Instagram and WhatsApp?
  • Am I looking for something that can launch within a year, or a multi-year bet?

What a Strong Answer Covers Guidance

  • A clear objective for the expansion and evaluation criteria tied to it: user demand, Facebook's right to win, business fit, and trust and regulatory risk
  • A short list of candidate verticals compared on those criteria, with a reason for dropping each one not chosen
  • A single recommendation grounded in specific Facebook assets such as the friend graph, Groups, Pages, Messenger and Marketplace
  • A first product and entry sequence, with a north-star metric and guardrails
  • Honest risks, including Meta's trust and privacy history and incumbent competitors, with mitigations

Follow-up Questions Guidance

  • What evidence after the first year would make you shut the vertical down?
  • How would you solve the cold-start problem on the supply side of your chosen vertical?
  • Why build it rather than partner with or acquire an existing player?