What are the methods of product portfolio analysis?
Methods For Portfolio Analysis BCG Growth-Share Matrix. Hofer’s Product-Market Evolution Matrix. GE Multifactor Portfolio Matrix. Market Life Cycle-Competitive Strength Matrix.
What are the principles of the Boston Consulting Group model?
The BCG Matrix works on the principle that every company should have a portfolio containing both high-growth products requiring cash investment and low-growth products that throw off excess cash. Having both types of products will ensure long-term business success.
What is a product portfolio strategy?
The term product portfolio strategy refers to a company’s plan of action for aligning its products with its goals. While the word “product” often refers to a specific physical product, in the context of this article, the term refers to features and service offerings as well as physical products.
What are the portfolio techniques?
Project portfolio management techniques….3.1 Aligning Process Group
- 3.1.1 Identification.
- 2 Categorisation.
- 3 Evaluation.
- 4 Selection.
- 5 Prioritisation.
- 6 Portfolio Balancing.
- 7 Authorisation.
How do you analyze the BCG matrix?
- Choose the unit. BCG matrix can be used to analyze SBUs, separate brands, products or a firm as a unit itself.
- Define the market. Defining the market is one of the most important things to do in this analysis.
- Calculate relative market share.
- Find out market growth rate.
- Draw the circles on a matrix.
What is the assumption of BCG portfolio model?
The Boston Matrix makes a series of key assumptions: Market share can be gained by investment in marketing. Market share gains will always generate cash surpluses. Cash surpluses will be generated when the product is in the maturity stage of the life cycle.
How can the Boston Matrix be used to manage a product portfolio?
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.
How do you structure a product portfolio?
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.
What are the examples of product portfolio?
Product Portfolio Examples The Coca Cola Company has Cola (Original, Diet, Zero), Sprite, Fanta, Minute Maid, Kinley and Smartwater as few of the well known brands in its product portfolio. Another Example is Apple. Apple has iPhone, iPad, Mac, iPod in its portfolio.
Why choose Boston Consulting Group?
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963.
How is portfolio analysis linked with product life cycle?
Portfolio Analysis is strongly linked with the Product Life Cycle! When the firm has classified the SBUs, it can determine the roles each SBU will play in the future, in order to shape the future business portfolio. The company can choose from four strategies for each business unit.
What are the characteristics of a successful product portfolio?
To be successful, a company should have a portfolio of products with different growth rates and different market shares. The portfolio composition is a function of the balance between cash flows. High growth products require cash inputs to grow. Low growth products should generate excess cash.
Can marketers in small businesses use portfolio thinking?
However, marketers in smaller businesses can use similar portfolio thinking to their products or services to boost leads and sales as we’ll show at the end of this article. Considering each of these quadrants, here are some recommendations on actions for each:
