Santos, Christian B.

BSA 4th year

1. Define product portfolio management

 Product portfolio management is about managing the entire product portfolio of an
organization. The product portfolio manager is responsible for allocating resources to
ensure an optimal ROI, identifying the key areas of improvement, and ensuring that the
product is aligned with the organization’s broader strategy.
2. Describe the benefits of product portfolio management
 There are many advantages that product portfolio management brings to any business.
It offers a centralized view of a range of products against how the products are currently
performing in the marketplace. The portfolio management approach eliminates the
agendas and initiatives that are competing for the development of the product. It allows
us to decide whether to allocate resources to strengthen a product in the growing
market against improving an offering or eliminating it. Product portfolio management
makes use of data-driven methods that helps in streamlining the research and
development that identifies the markets and the products that offer the best
opportunities for growth, development, and profitability. If your company has an
effective product portfolio management, then you benefit from:
o Improvement in positioning among your competitors
o Maximizing investment in products
o Identifying the weak and strong products to understand the ways to allocate
resources
o Ensuring that the business objectives and the product investments are aligned
o Prioritizing the focus on the product
o Improving collaboration and communication
3. Describe the goals and challenges of product portfolio management
 To get the maximum benefits, individual product initiatives must be focused on. The
products are analyzed both on how it performs for the business and how it is placed in
the market. It lets companies allocate resources to enhance the product and to bring in
new product developments. It helps to bolster those products that are capable of a
breakthrough. Some of the goals that the company aims to meet through product
portfolio management are:
o Identifying those products that have a higher demand in the market
o Eliminating the products that are underperforming in the market
o Allocating the resources to those products that look promising
o Identifying products that dominate in a slow-growth market
o Improving, rebranding, or changing the product in a promising market
o Balancing out the long and the short-term goals
o Developing better communication and links that meet the corporate strategy
4. What are the product portfolio management techniques, frameworks and models?
 Management Techniques
o These are some common axes that used to define and shape a product portfolio
mix:
  Investment versus market/technical risks (most common)
 Market growth versus market share (second most common)
 Revenue or profit versus strategic alignment
 Competitive position versus market maturity
 Industry attractiveness versus competitive strengths
 Frameworks
o Ansoff Matrix
 Contains a market dimension and a product dimension and
recommends strategies.
o GE/McKinsey’s Portfolio Analysis Matrix
 Looks at the relative investment companies should make relative to the
Industry Attractiveness and Competitive Strength.
o Innovation Ambition Matrix
 Used for optimizing the investments in new product development.
o BCG Matrix
 Guides investment in products and in marketing – focus on high growth,
high share.

Sources:
https://www.jigsawacademy.com/blogs/product-management/product-portfolio-management/amp/?
fbclid=IwAR3duoX3oYeJHVLI9-N-iJauDG_0AagrMjKL6xVanr0vn2XYgY1YgRhQUYI

https://www.tcgen.com/product-portfolio-management/