What are the product portfolio models?

A business with a range of products has a portfolio of products. However, owning a product portfolio poses a problem for a business. It must decide how to allocate investment (e.g. in product development, promotion) across the portfolio.

What are portfolio models in marketing?

“Portfolio models are a tool used to compare all SBUs within a company, on specific criteria, to give an indication 0f the most logical strategic direction to take each SBU, and to what extent.”

What is meant by product portfolio in business?

A product portfolio is the range of items sold by a business. A company like Sony has a product portfolio that includes computers, cameras, televisions and games.

What is product portfolio strategy?

The term product portfolio strategy refers to a company’s plan of action for aligning its products with its goals. This strategy will allow the team to calculate risk-reward ratios, return on investment (ROI), and other key data that are essential to making the right decisions.

What is product portfolio analysis by BCG matrix?

Product portfolio analysis is used for analyzing company products’ strategic market position, in order to decide which products should receive more or less investment. The Boston Consulting Group (BCG) growth-share matrix is the best known approach for product portfolio analysis.

What are the uses in BCG product portfolio concept?

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. It’s also known as the Growth/Share Matrix.

What is a portfolio analysis in marketing?

What is the Portfolio Analysis? The Portfolio Analysis is an aid that is used by Marketeers to take decisions over product-market combinations (portfolio). It is an essential component of the Internal Analysis where the strengths and weaknesses of a company are researched.

What are the models relating to portfolio analysis?

Four portfolio analysis models: Boston Consulting growth-share matrix, General Electric industry-attractiveness matrix, Shell directional policy matrix, and Arthur D.

What is the purpose of product portfolio?

The goal of product portfolio management is to ensure that the company’s investment in products meets objectives. In order to do this, portfolio management must understand the needs and contributions of the products and allocate resources across product lines and SBUs to optimize their market performance.

How do I make a product portfolio?

How to create a portfolio roadmap

Step 1: Identify your goals. Set the overall vision and identify goals at the top level of your product portfolio.
Step 2: Prioritize key initiatives.
Step 3: Link tactical work with strategic initiatives.
Step 4: Visualize your portfolio roadmap.

What is a product portfolio?

A product portfolio is the collection of all the products or services offered by a company. Product portfolio analysis can provide nuanced views on a stock type, company growth prospects, profit margin drivers, income contributions, market leadership, and operational risk.

How do you create a product portfolio strategy?

Here are four key steps to build your first portfolio roadmap:

Step 1: Identify your goals. Set the overall vision and identify goals at the top level of your product portfolio.
Step 2: Prioritize key initiatives.
Step 3: Link tactical work with strategic initiatives.
Step 4: Visualize your portfolio roadmap.

Who are the companies that use product portfolio management?

Product portfolio management is used in multiple industries: tech sector giants like Apple and IBM, as well as in numerous retail industries like Georgia Pacific, Procter & Gamble, and Kellogg’s.

Which is the best product portfolio analysis matrix?

By being able to visualize the entire portfolio in this way, your organization can make decisions regarding your future direction. Two of the most popular product portfolio analysis matrices are the Boston Consulting Group Matrix (BCG Matrix) and the GE/McKinsey Matrix.

What makes a mature company a product portfolio?

Product Portfolio and Mature Companies. Mature companies often have diversified product portfolios. Internal product development and acquisitions contribute to portfolio size over time, and larger enterprises have the infrastructure to support the marketing of a broader offering.

How is product portfolio management used in are & D?

Product portfolio management also utilizes data-driven methods to streamline R&D by identifying products or markets with the best opportunities for new development, growth, and profitability. Effective product portfolio management initiatives will help: