Should earbuds make phones?

A product strategy question from a product manager interview, set at Gunjo Audio, a fictional consumer electronics company.

The question

Skills this case tests

A starting structure

Goal behind "own the ecosystem" → market (size, margin, concentration) → right to win → year-1 economics and risk → alternative options

How to approach this case

Start with the goal behind the request. What does owning the ecosystem mean to the founder, and what worry sits behind it? A phone is one way to reach that goal, not the goal itself. Ask about the time frame and the appetite for risk. Then study the market: size, margins, how concentrated it is and what makes buyers choose a phone at this price. Compare the company's strengths with what a phone business needs, including service, software updates, chip supply and cash tied up in stock. Estimate a rough first-year profit and loss. List other ways to reach the same goal and compare them on cost, reversibility and how well they solve the real worry. A strong close gives a clear recommendation, a staged plan that respects the founder's ambition, and thresholds for revisiting the idea.

The full method for strategy, pricing and growth questions

After the mock interview you get scores on five skills, what to fix with quotes from your answers, and the ideal path for this case.