Introduction
In the competitive landscape of product management interviews at FAANG companies, candidates are frequently presented with questions that test their analytical and strategic thinking abilities. A crucial aspect of tackling these challenges is utilizing structured frameworks to craft coherent and insightful responses. In this article, we will dissect the question, “Why did Microsoft buy GitHub?” This serves as a prime example of the type of strategic question aspiring or seasoned Product Managers (PMs) might encounter and provides an opportunity to demonstrate the application of interview frameworks highlighted in ‘Decode and Conquer: Answers to Product Management Interviews.’
Detailed Guide on Framework Application
To unpack the rationale behind Microsoft’s acquisition of GitHub, we’ll employ the CIRCLES Method™, a popular framework for formulating answers to product interview questions.
Step-by-step Guide on How to Apply the Frameworks
- Comprehend the Situation: Start by understanding why companies generally acquire other companies – for market expansion, technology gains, talent acquisition, synergies, among other strategic objectives.
- Identify the Customer: Recognize Microsoft’s core customer base as developers, IT professionals, and enterprises. GitHub’s community consists of millions of developers. Hence, this acquisition could directly benefit Microsoft’s target audience.
- Report the Customer’s Needs: Consider the needs of both Microsoft and GitHub users, including the need for a robust development platform, collaborative tools, and a strong ecosystem for software development and distribution.
- Cut Through the Priorities: Microsoft needed to strengthen its position in the developer community, improve its cloud computing services, and embrace open-source development. These are strategic priorities.
- List Solutions: Evaluate potential solutions, such as building a similar platform in-house or forming a partnership, and conclude why an acquisition was the most effective approach.
- Evaluate Trade-Offs: Analyze the pros and cons of Microsoft acquiring GitHub, such as gaining immediate access to a large developer community versus the cost of acquisition and potential culture clashes.
- Summarize Your Recommendation: End with a recommendation that highlights how the acquisition aligns with Microsoft’s strategic goals and addresses the needs of their customers.
Hypothetical Examples to Demonstrate Frameworks
Let’s apply the CIRCLES Method™ through a hypothetical example. Suppose, in this scenario, it is 2018, and Microsoft is considering the acquisition. By carefully assessing each step of the framework, the recommendation would be that the acquisition of GitHub is a strategic move that provides an immediate and substantial benefit to Microsoft’s business goals and target audience. It gives Microsoft a competitive edge in the cloud services market and catalyzes its engagement with the developer community.
Facts Checks for Balanced Thinking
To ensure the response is realistic, it’s essential to consider actual data points, such as:
- GitHub’s user base at the time of acquisition (over 28 million developers),
- The rising trend of open-source development and its importance in the tech industry,
- Microsoft’s position in the cloud market compared to competitors like Amazon Web Services (AWS) and Google Cloud Platform (GCP), and
- The strategic fit of GitHub’s platform with Microsoft’s existing products, such as Visual Studio and Azure.
While we may not know the exact details of Microsoft’s internal considerations, we can approximate why such an acquisition made sense based on these industry metrics and trends.
Tips for Effective Communication During the Interview
As a PM candidate, it’s crucial to convey your thoughts clearly and concisely. Here are some tips for effective communication:
- Use clean and structured sentences to articulate your points.
- Employ the chosen framework methodically, ensuring your answer flows logically from one point to the next.
- Be confident in your approximations and assumptions, as long as they’re backed by reasonable logic.
- Be prepared to discuss alternate viewpoints or to defend your position if questioned further.
- Practice active listening, and ensure you answer the question that was asked, not the one you wish was asked.
Conclusion
In conclusion, Microsoft’s acquisition of GitHub presents an excellent case study for PM candidates to showcase strategic thinking and analytical prowess. By applying the CIRCLES Method™ to the given question, we’ve demonstrated how a structured approach can effectively address complex strategic questions. Remember, practice makes perfect. I encourage you to apply these frameworks and strategies in your interview preparation, as this will not only help you answer similar questions but also solidify your understanding of strategic decision-making in product management.