Strategy question
How would you define a product strategy for designing a smart shoe?
- PayPal
- Strategy
- Hard
Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.
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What this question tests
Strategic thinking for a hardware-adjacent product: connecting a new device category to a company's existing core business.
How to approach it
- Clarify why PayPal specifically: identify how a smart shoe connects to payments, such as wearable tap-to-pay.
- Identify the target user: fitness-focused consumers who want frictionless small payments on the go.
- Define the core value proposition: pay for transit, coffee, or gym access without pulling out a phone or wallet.
- Address feasibility: hardware partnerships with shoe manufacturers versus PayPal building hardware itself.
- Define success as adoption rate among fitness users and transaction volume through the wearable.
What a strong answer includes
- Anchors the idea in PayPal's actual core competency (payments) rather than a generic fitness-tracking pitch.
- Proposes a concrete partnership model, like licensing PayPal's tap-to-pay chip to shoe brands, instead of building hardware in-house.
- Names a believable use case, like frictionless payment during a run without carrying a phone.
- Uses an assumed metric, e.g. targeting 10 percent of pilot users making a weekly tap-to-pay transaction.
Common mistakes
- Designing a generic fitness tracker with no tie to PayPal's payments business.
- Ignoring the cost and complexity of building or partnering on hardware.
- Not defining any success metric or adoption target.
Likely follow-up questions
- Would you build this hardware in-house or partner with an existing shoe brand?
- How would you price or monetize this product?
- What would be the biggest barrier to adoption?
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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