Should Google sunset a profitable but aging product?

Product Strategy
Medium
Google
55K views

You are tasked with recommending whether to sunset an old, profitable but technologically outdated product (e.g., Google Reader). Outline your evaluation criteria.

Why Interviewers Ask This

Interviewers ask this to evaluate your ability to balance short-term revenue against long-term strategic value and innovation. They specifically test if you can make difficult decisions using data-driven frameworks rather than emotional attachment, while considering user churn, engineering resource allocation, and alignment with Google's 'focus on the user' philosophy.

How to Answer This Question

1. Clarify Objectives: Immediately define what 'sunset' means for stakeholders, including timeline, user communication, and revenue impact targets. 2. Quantify Current State: Analyze the product's profitability trends, maintenance costs (engineering hours), and active user growth rates versus stagnant or declining metrics. 3. Assess Strategic Fit: Evaluate if the technology aligns with Google's core mission or if it distracts from high-growth areas like AI and mobile-first experiences. 4. Model Scenarios: Create a decision matrix comparing the cost of keeping the product running (opportunity cost) against the potential revenue loss and brand sentiment damage from killing it. 5. Propose a Transition Plan: Outline a phased shutdown strategy that includes migration paths for users, preserving data, and reallocating the freed-up engineering talent to more critical initiatives.

Key Points to Cover

  • Explicitly calculating the opportunity cost of maintaining legacy engineering resources
  • Demonstrating willingness to sacrifice short-term revenue for long-term strategic alignment
  • Proposing a concrete user migration strategy to minimize churn and brand damage
  • Using specific metrics like engagement decay and maintenance overhead ratios
  • Aligning the decision with Google's focus on innovation and technical excellence

Sample Answer

To decide whether to sunset a profitable but aging product like Google Reader, I would apply a framework balancing immediate financial health with long-term strategic opportunity. First, I'd analyze the cost-benefit rati…

Common Mistakes to Avoid

  • Focusing solely on current profitability without mentioning the hidden costs of technical debt
  • Making a binary decision without proposing a transition plan for affected users
  • Ignoring the strategic fit of the product within the broader Google ecosystem
  • Failing to quantify the opportunity cost of the engineering team's time

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