Google product manager ACES classic strategy question (Imagine you’re CEO of Uber: What would your 10-year strategy be?)

Click to expand the mind map for a detailed view.

1. Introduction

  • Interviewer: José, former PM at Google.
  • Candidate: Mark Rose, former Senior PM at Google.
  • Objective: Develop a 10-year strategy for Uber as its new CEO.

2. Clarifying the Question

  • Key Action: Ask clarifying questions to understand the scope and expectations.
  • Question 1: What is the market situation at Uber that demands a new CEO?
    • Answer: Uber struggles with profitability and operates in a highly competitive market.
  • Question 2: What are the key pillars or investment areas to focus on?
    • Answer: Focus on high-level tactics and strategic investments.

3. High-Level Approach

  • Mission: “To be the way you move” (moving people and things).
  • Customer Principles:
  1. Fast and Convenient.
  2. Safe.
  3. Environmentally Conscious.
  • Framework: Use Porter’s Five Forces to analyze the market and derive strategic pillars.

4. Porter’s Five Forces Analysis

4.1 Competition

  • Key Competitors:
  • Direct: Lyft, international ride-sharing companies.
  • Indirect: Google (Waymo), Amazon, FedEx, Cruise (autonomous vehicles).
  • Strategic Insight: Focus on AI and mobile app development to compete with tech giants.
  • AI: Critical for autonomous driving and improving user experience.
  • Mobile: Core to Uber’s platform and user engagement.

4.2 Customers

  • Key Insight: Network effects are crucial for Uber’s success.
  • Local vs. Global: Uber needs to expand globally to maintain its competitive edge.
  • Strategy: Invest in global distribution and local market penetration.
    • Acquisitions: Acquire local competitors to enter new markets.
    • Capital: Ensure a strong capital base for global expansion.

4.3 Suppliers

  • Key Insight: Uber’s drivers are not exclusive to the platform (also drive for Lyft).
  • Problem: Lack of control over the supply chain (drivers).
  • Solution: Invest in autonomous vehicles to own the supply chain.
    • Vertical Integration: Reduce dependency on human drivers.
    • AI and Autonomous Driving: Key to long-term supply chain control.

4.4 Substitutes

  • Key Insight: Low threat from traditional substitutes (e.g., taxis, bicycles, mass transit).
  • Exception: Moving things (e.g., parcels) faces competition from UPS, FedEx, Amazon.
  • Strategy: Ensure competitive pricing and high-quality service for moving goods.

4.5 Threat of New Entrants

  • Key Insight: Two potential new entrants:
  1. Decentralized Transportation (DT): Blockchain-based competitors.
    • Strategy: Build a high-quality, centralized product that outperforms decentralized alternatives.
  2. Hyperloop: Elon Musk’s tunneling technology.
    • Strategy: Monitor but no immediate action needed (long-term impact).

5. Strategic Pillars for Uber’s 10-Year Plan

  • Pillar 1: AI and Machine Learning.
  • Focus: Enhance user experience, optimize routes, and enable autonomous driving.
  • Pillar 2: Autonomous Vehicles.
  • Focus: Own the supply chain by investing in self-driving technology.
  • Pillar 3: Network Effects and Global Expansion.
  • Focus: Expand globally through acquisitions and local market penetration.
  • Pillar 4: High-Quality Product.
  • Focus: Build a product that is fast, efficient, safe, and environmentally conscious.

6. Debugging the Strategy

  • What Wasn’t Covered:
  1. Consumer Perception and Brand: How Uber is perceived by users.
  2. M&A Strategy: Potential acquisitions in technology and local markets.
  3. Profitability and Margins: Ensuring sustainable profitability alongside growth.
  • Key Insight: A great business exists at the intersection of demand and profitability.

7. Prioritizing Strategic Pillars

  • Criteria for Prioritization:
  1. Fast and Efficient: Core to Uber’s value proposition.
  2. AI and Machine Learning: Critical for improving user experience and enabling autonomous driving.
  3. Autonomous Vehicles: Long-term investment to control the supply chain.
  4. Network Effects and Global Expansion: Essential for maintaining market dominance.
  • Decision: Prioritize AI and Machine Learning first, as it underpins all other pillars.

8. North Star Metric

  • Metric: Monthly Move Units (MMU).
  • Definition: The number of people and things moved monthly.
  • Why: Aligns with the mission “To be the way you move” and tracks progress toward global dominance.

9. Conclusion

  • Key Takeaway: Mark effectively structured his response using Porter’s Five Forces, prioritized user-centric principles, and proposed a clear North Star metric.
  • Call to Action: For more interview prep, visit IGotAnOffer.

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