The true value of classifying businesses product portfolio management is that it allows you to systematically organize complex classifying businesses product groups and objectively evaluate their current status and future potential. In the B2B market in particular, there is a strong tendency for portfolios to become bloated through years of product development and corporate acquisitions, making it difficult to even grasp the overall picture.
To address this issue, product portfolio
Management can be used to visualize these product groups and set appropriate priorities.
By evaluating indicators such as market growth rate, profitability, and competitiveness for middle east mobile number list each product, you will be able to determine which products your company should actively invest in and which ones it should gradually downsize or withdraw from.
In addition, a document from the Ministry of
Economy, Trade and Industry states that “investors also have high expectations for the review and restructuring of business portfolios.”
Expectations for google deepmind has expressed its belief investors to review and restructure their business portfolios
(Source: Ministry of Economy, Trade and Industry ” Toward the Promotion of Value Creation Management “)
Organizing your business portfolio through product portfolio management also has benefits from the perspective of strengthening relationships with external stakeholders.
Scene 2: Allocation of management resources
Companies cannot allocate resources equally to all products and businesses, and must concentrate investments in areas where growth is and respond cautiously in areas with low profitability. In this case, product portfolio management classifies products on indicators such as market growth rate and market share, and clarifies where resources should be .
It is especially important to belgium business directory invest in “growth products” that will be future sources of revenue. For products in the growth phase, it is essential to invest resources to expand market share as market competition intensifies.
However, it often takes time to generate profits, so a strategy is to support sustainable growth by leveraging the cash flows from mature products that are the current revenue streams.
Scene 3: Responding to changes in the market environment
As technological innovation continues to accelerate and customer become more diverse, traditional products and services may no longer be able to maintain competitiveness. This is why it is necessary to continually monitor market trends and quickly review product strategies in response to changes.
By implementing product portfolio management, you can understand the positioning of your products on data such as “market growth rate” and “competitive environment,” and reorganize your portfolio to suit changes in the environment. For example, this strategy involves reviewing the allocation of resources in markets where growth is slowing and making aggressive investments in new markets that are showing an expansionary trend.
