What are product portfolios ?
Product portfolio is a set of all products, product lines or other groupings within a business unit or business division. Portfolios can include existing products, which may be at various phases of their own life cycles, as well as incoming products (those anticipated, actually in development, or in the launch phase).
In smaller organizations, a single product or product line may in fact comprise the entire portfolio.
Common approaches to organize products are:
- Organize by markets on which the products focus
- Organize by types of products produced
- Broad functional themes of the products or the precise needs of the market being met those products and how diverse are those needs
- E.g. If GE produces a light bulb and a tube light – they can be put in same portfolio.
- However GE also produces medical devices or has financial services division with financial products – which will have to be in their own portfolio independently.
- Types of development methods used top produce
An example of a product portfolio is given below:
Organizing products as product portfolios can improve the efficiency of managing multiple products closely around the needs of customers they are serving, while also diffusing the firm’s strategy overall across all product hierarchies.
Source: Haines, S. (n.d.). The Product Manager’s Desk Reference.