Duolingo · Strategy · Mid · 45 to 60 minutes

Where should Duolingo find new revenue?

Duolingo is a global app that helps people learn languages through short, gamified lessons. Answer this product management case and get it graded line by line against a weighted rubric.

Strategic thinking
User segmentation
Opportunity sizing
Prioritization
Structured communication

The situation

You are a PM in Duolingo's growth and monetization organization. A senior product leader asks you to recommend a new business line or a new user segment that could increase revenue beyond the core learning subscription. The request is global, not tied to one country, and leadership wants a plan that can show early traction while also opening a larger business over the next 1 to 2 years. Duolingo's brand is strong and widely trusted, especially among young adults learning for career or travel, but the product is best known for light, approachable learning rather than deep professional tools. At the same time, the team knows that keeping learners engaged day after day is one of the hardest parts of the funnel, and more advanced users may leave when their needs become more specific. You need to advise where Duolingo should expand, who the target users should be, why that space is attractive now, and how to balance near-term wins with a bigger strategic move.

What to produce

Write a 1 to 2 page strategy memo.

Your answer must

State the key assumptions or clarifying answers you are using across scope, users, timeline, competition, product context, funnel, and business goal.
Propose 3 to 5 credible opportunity spaces, each tied to a specific user segment and a clear point in the user journey.
Evaluate the options with an explicit framework such as 4C and SWOT, or an equivalent structure, and show why Duolingo is or is not suited to win in each space.
Recommend one primary bet and one secondary bet, with clear trade-offs on impact, effort, strategic fit, and revenue potential.
Define success metrics, major risks, and the first experiments or milestones you would use to test the recommendation.

Constraints

The strategy must work for a global user base, not a single region only.
Do not depend on undisclosed acquisitions, major partnerships, or entirely new technical capabilities.
The recommendation should fit Duolingo's playful, trusted brand and existing strengths in lightweight learning experiences.
Address both near-term traction and a credible 1 to 2 year path to meaningful revenue.

Format

Use sections titled assumptions, opportunity spaces, evaluation, recommendation, and risks and metrics.

How Duolingo actually played it

A worked interview answer for the prompt of finding a new business line or user segment for Duolingo. It clarifies the situation along seven dimensions such as scope, users, timeline, competition and funnel before choosing a direction.

Clarify the situation before proposing a strategy
Use a fixed set of dimensions so nothing is missed
Tie each option to a user group and a funnel stage

Built from Product Strategy Problem: Duolingo new business line by Sreerag Panat.