Strategy question
If Walmart wanted to compete directly with Amazon Prime, what would your product strategy look like?
- Walmart
- Strategy
- Hard
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What this question tests
Competitive strategy against a dominant incumbent, requiring the candidate to lean on Walmart's actual differentiated assets rather than copying Prime feature for feature.
How to approach it
- State Walmart's real advantage: a massive physical store footprint enabling fast, low cost fulfillment that Amazon's warehouse network does not match as densely everywhere.
- Identify Walmart+'s gap versus Prime: fewer bundled entertainment perks, which may not be Walmart's best differentiation lever anyway.
- Propose leaning into the physical store advantage: same day delivery and free pickup as the core value proposition.
- Propose a pricing angle: price Walmart+ below Prime with a clearer, grocery and essentials focused value prop for price sensitive households.
- Define success: Walmart+ membership growth and share of wallet among members versus non members.
What a strong answer includes
- Grounds the strategy in Walmart's real structural advantage instead of trying to match Prime Video's content bundle.
- Explicitly targets Walmart's core price sensitive, grocery heavy customer base rather than Amazon's typical Prime member.
- Uses share of wallet as a meaningful metric, since Walmart's edge is being the default for everyday spend.
Common mistakes
- Proposing to match Amazon feature for feature instead of playing to Walmart's actual strengths.
- Ignoring Walmart's core customer base and treating the strategy as if targeting Amazon's typical Prime member.
Likely follow-up questions
- Would you invest in matching Prime Video's content library, or avoid that entirely? Why?
- How would you measure whether Walmart+ is actually converting price sensitive shoppers away from Amazon?
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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