Product portfolio analysis
How does product portfolio analysis assist in decision-making?
Product portfolio analysis assists in decision-making by providing businesses with a comprehensive view of their product offerings and their performance in the market. It involves assessing and analyzing the entire range of products or services offered by a business. Product portfolio analysis helps businesses make informed decisions regarding resource allocation, investment priorities, and strategic direction. It enables businesses to identify the strengths and weaknesses of different products, determine which products contribute the most to revenue and profit, and identify products with growth potential or declining performance. By conducting product portfolio analysis, businesses can identify opportunities for product improvement, expansion, or divestment. It allows businesses to allocate resources strategically, optimize their product mix, and make decisions that align with their overall business objectives and market conditions. Product portfolio analysis serves as a valuable tool for businesses to assess and manage their product offerings effectively.
What is the product life cycle and its implications?
The product life cycle represents the stages a product goes through, including introduction, growth, maturity, and decline. Understanding the product life cyclehelps businesses adapt their strategies accordingly, such as investing in marketing during the introduction stage and exploring new opportunities during the decline stage.