🧠 Knowledge Series #6: How to use AI for strategy creation (part 2)

AI prompts and tools for differentiation, market trends and validation

🔒The Knowledge Series is a series of easy to read guides designed to help you plug the gaps in your tech knowledge so that you feel more confident when chatting to colleagues. Clearly explained in plain English. One topic at a time.

 If you’re a free subscriber and you’d like to upgrade to receive them you can do so below. Or you can find out more about paid access here.

---

Hi product people 👋,

Welcome back to part two of this special Knowledge Series on developing a strategy using AI. 

To recap, in a tech context, a strategy typically includes the following components:

1. Setting a vision - who are you and what is your purpose? 

2. Business model and monetization - what are your unit economics and how will you make money?

3. Differentiation - why will customers choose you over the competition? What makes you unique?

4. Customer segmentation and market trend analysis - who are you selling your product to? What new market trends do you need to be aware of and why?

5. Strategy validation - how can you validate your strategy before executing it?

In part one, we explored how to develop a product vision, business models and monetization strategies. 

In this second part, we’ll continue to explore ways you can use AI prompts and tools to develop your strategy, with a focus on these areas in particular:

• ✨ Differentiation

• 👥 Customer segmentation and

• ✅ Strategy validation

---

Differentiation

There is a strange gravitational pull towards the status quo in product development. We look to others for validation that our ideas are worthwhile and if something feels too different our instinct is to dismiss it and copy someone else instead. Luckily, AI has none of these human biases and so LLMs can be remarkably helpful in generating new ideas.

Before we do that, let’s explore what the main types of product differentiation are. 

The 5 types of differentiation

If you’re thinking about how to differentiate your own product or business, these are some of the most common types of differentiation you can apply:

1. Features

2. Policies

3. UX

4. Pricing

5. Performance