Strategy question
Facebook has launched Rooms as a feature which is similar to Zoom & MS Teams. Rooms lets user create rooms to host events. Should Instagram also launch this program?
- Meta
- Strategy
- Hard
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What this question tests
Strategic reasoning about whether to extend a sibling-product feature to a new surface, weighing redundancy and cannibalization.
How to approach it
- Clarify what Rooms is: Facebook's Zoom-and-Teams-style group video hosting feature, and ask whether Instagram needs its own version.
- Assess Instagram's fit: it's visual and discovery-first, and already has Live and Video Chat, so a full Rooms feature may be redundant.
- Identify the real gap if any: does Instagram lack a way to host multi-person live events for creators that Rooms would solve better than existing Live?
- Weigh cannibalization risk: launching Rooms could split usage with Facebook's version rather than growing the overall pie.
- Recommend based on incrementality: only launch if there's a distinct Instagram-specific use case, otherwise enhance existing Instagram Live with more guests instead.
- Define success as incremental engagement from multi-person sessions versus cannibalization of existing Live usage.
What a strong answer includes
- Correctly interrogates whether this is additive or redundant before recommending, rather than assuming more features is always better.
- Distinguishes Instagram's creator and discovery audience from Facebook's more group-oriented one as the basis for the decision.
- Proposes a concrete alternative, enhancing existing Instagram Live, instead of a blanket yes or no.
Common mistakes
- Assuming every Facebook feature should automatically be ported to Instagram.
- Not addressing cannibalization risk between the two apps under the same company.
Likely follow-up questions
- How would you test this without a full launch?
- What metric would tell you it's cannibalizing rather than growing engagement?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop