The Definition of a Product Portfolio Analysis


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.

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; analyzing 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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