PRODUCT PORTFOLIO

MANAGEMENT
 Is the collection of all the products or
services offered by a company.
 Analysis of product portfolios can
give deep and nuanced insight into
the workings of a company and its
earnings potential.

What Is a Product
Portfolio?
 Internal product development and
acquisitions- support the marketing of a
broader offering.

 Geographic expansion- popularity

among cities or countries.

 Diversification- limit growth potential

while reducing downside risk and the
amount of speculation in equity
valuation.

Product Portfolios and Mature

Companies
 more exposed to the performance of
their main products- greater operational
volatility.

 More risk and higher growth potential-

more speculative equity valuation.

Product Portfolios and Growth

Companies
 Product portfolios are an
important element of financial
analysis because they provide
context and granularity to a firm
and its primary operations.
Product Portfolio
Management?
 is a practice designed to manage all
aspects of the products your company
sells.

 It involves:
 evaluating performance
 identifying risks and opportunities
 prioritizing high-value products
 optimizing resource allocation across the
portfolio
 balancing the product mix among strategic
buckets.
 This practice aligns the product portfolio
with business strategies to achieve
target revenue and profitability.

 It can also bring winning products to

market faster.

 This approach goes hand-in-hand with a

gated process that has built-in check
points from idea to launch.

 It provides the repeatable and auditable

processes- reduce project duration and
deliver on time.
 Goals of Product Portfolio
Management
 Identify products that experience high demand in a

growing market

 Eliminate underperforming products in unattractive

markets

 Allocate resources to promising innovative products

 Identify products that dominate a slow growth market

 Improve, change, or re-brand products in promising

markets

 Focus product pipeline processes on appropriate products

Benefits of Product Portfolio
Management
 Improve competitive positioning

 Maximize product investments

 Identify strong and weak products to clarify

resource allocation

 Ensure that product investments align with

business objectives

 Prioritize product focus

Improve communication and collaboration
 Challenges of Product
Portfolio Management

 It is difficult to sell new resource allocation

plans- decrease in resource allocation.

 Overall goals of product portfolio

management differ within an organization.

 Breaking-down Product
Portfolio and its
management
 PPM is one of the most crucial elements of the

entire business strategy.

 Significant tool for the corporate financial planning

 of the firm and also for the investors

 Provide the management of the company with

crucial information

 Analyze which projects is well aligned with the

overall strategy and objectives of the business

 Product Manager vs Product Portfolio Manager

Product Manager: Usually responsible for a

single specific product, its features, product
roadmap, and broader strategy.

Product Portfolio Manager:

Responsible for an organization’s portfolio of
products, their inter-relationships, and the
portfolio’s role in the market.
 Importance of Product
Portfolio to business
1)Innovation- It helps in defining the types
and nature of products
2)Tax benefits- structure the investments and
all the other financial elements of the
company
3)Aligns projects with the business strategy-
It is very important that the product
offerings and their revenue generations
match and align with the long-term vision of
the company and the business strategy.
4)Visualize the entire portfolio
5)Effective allocation of resources- finances,
human resources, and manufacturing
6) Data for the key members of the
management- providing the crucial and
important data to the key members of the
management

7) Cash flow management- determine the

products that bring the maximum revenues
and the company will allocate the maximum
resources on the same.

8.) Synergy within the internal team- aware

about the overall business strategy and
operations of the firm

9) Proper selection of the target market-

figure out on why the certain lines of products
Product Portfolio Management
Technique

BCG Matrix
 Designed to help with long-term
strategic planning

 also known as the 

Growth/Share Matrix.
 The Matrix is divided into 4 quadrants based on
an analysis of market growth and relative market
share.

1. Dogs: These are products with

low growth or market share.
2. Question marks: Products in
high growth markets with low
market share.
3. Stars: Products in high growth
markets with high market
share.
4. Cash cows: Products in low
 is a set of company’s products, services,
strategic business units and allows it to
develop its mission and to achieve its
strategic goals.

 well-designed business portfolio, build

and strengthen the trust of potential
customers and your competitive
position.

What is Business
Portfolio?
 The difference between business
and product portfolio

 The product portfolio is focused

only on the physical items sold by
the company, while business
portfolio focused on a wider range
of elements including productive
assets such as equipment,
machinery, and fixed assets. 
THANK YOU!