Product portfolio management, product lifestyle management, and product portfolio analysis all describe the process that allows the integration of strategic analysis in regards to market opportunities of new products.
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Definition of Product Portfolio Analysis
The definition of product portfolio analysis is the study of each of a company's products in an attempt to improve market performance.
Purpose of Product Portfolio Analysis
The benefits of product portfolios include pointing out growths in the market and improvements made; analysing failures and successes; setting goals and targets, as well as sales strategies; and looking for lapses in profit which could possibly be closed.
Three Main Components
The three main components that comprise a product portfolio analysis include the market share multiplier, the physical volume multiplier and volume dollar multiplier. These all aid in the analysis of the portfolio and relate to market share.
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