For our flagship programme PM1101E: Exposure to Product Management, interested students would be required to undergo 2 application rounds - the first round would consist of filling up an application form featuring both administrative and scenario-based questions, while the second round would be a short interview as a follow-up to the applicant’s initial responses from the form.

Given her current profession as a Product Manager at SingTel, our Head of Curriculum - Joanna - provides her take on a case question drafted for our recent application form, while also addressing common pitfalls based on the responses collected. 

Tiktok has officially launched Tiktok Shop in several markets. With Tiktok’s new entrance into the eCommerce market, this could threaten Shopee’s sales and lead to a drop in profits. As a Shopee product manager, what would you do to minimise this impact to Shopee? You may provide up to 2 suggestions for your response.

For each of the suggestions listed, we will address the key issues and pitfalls based on the responses collected, before summarising a few key takeaways from addressing this case question, especially for aspiring PMs to take note of.

Hint: this is not an answer we are looking for

Possible follow-up question: “Who will be paying for this, and how is this a sustainable strategy?”

Comments on responses gathered from this suggestion:

• This strategy risks triggering a price war in the industry. 

• As a PM in a well-established company like Shopee, with clearly defined roles, it's important to remember that decisions about discounts and campaigns are typically made by the marketing team and top management. These are not within the usual scope of a PM's responsibilities.

• Transitioning from a consumer mindset to a professional one is crucial for a PM. While understanding user needs is essential, remember that users are not your only stakeholders. Being a PM requires a keen awareness of the broader business environment and your company's current strategy. Prior to 2022, tech companies generally pursued rapid growth. However, the recent trend has shifted towards sustainable growth, focusing on return on investment (ROI).

• A common comment - "I shop on Shopee because it's cheap" - highlights the difference between thinking as a consumer and as a PM. Sometimes, what you or your users want may not align with your company's strategy. The challenge for a PM is to devise solutions that not only align with the company's strategy but also meet the latent or unarticulated needs of users, differentiating your company from competitors. Discovering and addressing these needs is a complex task and is integral to the role of a PM.

Hint: this is not an answer we are looking for

Possible follow-up question: “How can you guarantee the exclusivity of the partnership, and how is this approach sustainable in the long term?”

Comments on responses gathered from this suggestion:

• Most answers suggest using legal contracts or financial incentives. However, these methods have their limitations.

• Consider what occurs when the contract ends or the financial incentives are no longer available. The threat posed by competitors won't simply vanish overnight. Relying solely on these solutions merely postpones the inevitable challenge. Therefore, this approach is not a viable, long-term solution for Shopee in managing such situations.

Comments on responses gathered from this suggestion:

• UI is not the same as UX. UX encompasses comprehending the entire buying journey, identifying areas to leverage strengths or address weaknesses, thereby minimising business impacts from new market entrants.

• In contrast, UI pertains solely to interface design. Merely altering the interface or adding buttons is insufficient to effectively counteract the impact of competitors like TikTok.

Hint: this is a potential solution, but it's important to clarify how it relates to reducing the impact of TikTok Shop on Shopee.

Possible follow-up question: “If Shopee integrates social features, won't it just become a TikTok clone? Do you believe that imitating competitor features is an effective strategy to minimise their impact?”

This suggestion involves adopting a feature already implemented by TikTok, which may be doing it more effectively. Simply copying this feature doesn't necessarily assure your management that it will prevent users from switching to competitors or lessen the business impact. To strengthen this argument, consider Shopee's primary objectives. Are they focused on attracting new users, retaining sellers, or something else? There is a need to connect the suggested social e-commerce feature to these overarching goals.

For instance, if Shopee's aim is to acquire new users, how can adding social e-commerce features attract them to Shopee instead of TikTok, especially when TikTok may offer similar or superior features? This connection needs to be clearly established in your response.

So, what exactly does a PM role involve?

• Understanding User Needs: While some user needs are obvious and universal, like the desire for cheaper services, a PM's role is to delve deeper. It's about identifying less obvious user pain points or needs, some of which the users themselves might not even be aware of.

• Awareness of the Macro Environment: A PM must always be cognizant of the larger business and economic environment in which they operate.

• Alignment with Organisational Goals: It's crucial for PMs to have a clear understanding of the organisation's overall goals. They should focus on developing products that contribute to these goals and avoid introducing features that conflict with the company’s direction. For example, if a competitor introduces a successful feature, it doesn’t necessarily mean it should be replicated in your organisation.

• Effective Implementation: A good solution is only as effective as its implementation. Each company has its own unique dynamics and constraints. A solution that works for a competitor might not necessarily be suitable for your organisation.

• Balancing Short-Term and Long-Term Planning: PMs should generally focus on sustainable, long-term product planning. While short-term plans can be part of the strategy, they should be framed within a larger, long-term vision. If you propose a short-term plan to management, be prepared to show how it fits into the long-term goals and why an intermediary plan is necessary before implementing the long-term strategy.

Furthermore, given the context of the question, what approach can you take?

First, consider the fundamental differences between TikTok and Shopee. TikTok is primarily a social media platform, attracting users for entertainment. In contrast, Shopee is an e-commerce platform where people shop. This distinction is often viewed as a disadvantage for Shopee, as it may seem less capable of achieving viral success like TikTok. However, this very difference can be leveraged as a unique selling point against TikTok.

It's important to recognise that user behaviours are typically hard to change, and it usually requires more than the efforts of one or a team of Product Managers to alter long-established user habits. The needs and behaviours associated with these two platforms are not completely overlapping. A productive strategy would be to analyse this aspect from a different angle. Investigate what unique user behaviours are specific to Shopee. How can these behaviours be identified and utilised to Shopee's advantage?

We hope that through this case question, along with the other application questions, do our PM1101E applicants get a good glimpse of what to expect for your typical product interviews. To maximise learning, we highly encourage our applicants to reattempt this case question - especially after reading this article -  in order to consolidate the key takeaways that could possibly be drawn from this article.

Besides our upcoming PM1101E run in Semester 2, our Curriculum Team is in the midst of planning a Product Case Competition with Sharing And Gaining Experiences (SAGE), a student-run organisation that provides a knowledge-sharing platform for students particularly on career advice. Should you be keen to participate in this during our Recess Week, do follow our socials for our latest updates.