Product Management: Business Portfolio
Product Management: Business Portfolio
Product management
Business portfolio A business portfolio is a collection of business and products that make up the company
Port folio analysis The process by which management evaluate the products and business making of the company
Boston Matrix The growth share matrix is a portfolio planning method that evaluates a companys strategic business unit in terms of their market growth and relative market share. SBU are classified as stars, cash cows, question mark or dogs.
STAR
QUESTION MARK
$
STARS
cow dog
CASH COW
Stars are high growth, high share businesses are products. They often need heavy investment to finance their rapid growth. Eventually there growth will slow down and will they will turn into cash cow.
Cash cow Cash cows are low growth, high share businesses are product, these establish and successful SBUs need less investment to hold their market share, therefore may produce a lot of cash that the company uses to pay its bills and to support other SBUs that need investment
Question mark Question marks are low share business unit or products in high growth market. They require a lot of cash to hold their share, let alone increase it. Management need to think about which question marks it should build into stars and which it should phase out
Dogs Low market growth, low growth and low shares. They may generate enough cash to maintain themselves but dont promise to be large sources of cash