Should Spotify enter the audiobook market?

Guidance

Should Spotify enter the audiobook market?

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Product Strategy

The Market Entry Playbook

Decide whether to enter a new market by evaluating the market's attractiveness, your company's "right to win," and the strategic trade-offs of execution.

Step 1

Clarify the strategic goal

Understand why the company wants to enter this market before evaluating the market itself. Is it to drive new revenue, acquire a new demographic of users, build a defensive moat, or increase ecosystem stickiness? E.g., Duolingo entering Math isn't just about teaching; it's about expanding LTV (Life-Time Value) per user and defending its position as an all-in-one learning hub.

Step 2

Assess market attractiveness & landscape

Step 3

Define your "Right to Win"

Step 4

Formulate the Execution Strategy (Build vs. Buy vs. Partner)

Step 5

Identify Risks & Mitigation

Additional Tips

Have a strong thesis: Don't just list pros and cons and leave it hanging. Conclude with a definitive "Go" or "No Go" recommendation.
Opportunity Cost is key: Remind the interviewer that saying "yes" to a new market means saying "no" to improving the core product. Evaluate if the ROI justifies the distraction.
Flywheel effect: The best market entry strategies create a loop. Explain how success in the new market will feed data, users, or revenue back into strengthening the original core business.

Should Spotify enter the audiobook market?

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