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A Kano diagram is a tool used in product management to visualize customer preferences over product features. It helps in understanding which features are expected by customers, which ones will satisfy them, and which ones will delight them. This understanding aids in prioritizing features for product development, ensuring that the product meets customer expectations and has features that can differentiate it in the market. It's particularly useful in launching successful products as it helps in making informed decisions about feature inclusion based on customer satisfaction and competitive advantage.
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How do you take your product management to the next level? Due to popular demand, we've expanded our Product Development Toolkit to include more tools...
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In 2008, Airbnb was a startup trying to raise money from investors across Silicon Valley. The company estimated it could grow to $2 billion in revenue in three years by capturing 15% of their total addressable market, or TAM. Airbnb was rejected by nearly all the investors it pitched because its assumption that it could capture 15% of its TAM was too optimistic. After an initial seed round and some promising years of growth, in 2011 Airbnb ended up raising $100M at a $1.3B valuation — a dramatically smaller valuation that assumed the company could capture 2% of its TAM.
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