productportfolio

A product portfolio is the collection of products and services a company offers to customers. It includes product lines, individual products and variants, as well as related services and platforms that support the value proposition. The portfolio concept distinguishes between the product mix (the overall assortment) and product lines (groups of related offerings). It is shaped by strategy, target markets, competitive positioning, and resource constraints.

Purpose and objectives: The portfolio aims to maximize value over time by balancing growth, profitability, risk, and cash flow. It guides decisions on development investments, pricing and positioning, and which offerings to expand, sunset, or divest. A coherent portfolio supports brand architecture and enables cross-selling and ecosystem development.

Management process and metrics: Portfolio management involves planning and governance, with criteria for adding, modifying, or removing offerings. Methods range from stage-gate to agile roadmaps. Key metrics include revenue, gross margin, lifecycle stage, strategic fit, market share, time to market, and launch success rate.

Considerations and examples: A balanced portfolio avoids excessive complexity and cannibalization while ensuring coverage across customer segments. Over time, some items may be sunsetted to free resources for higher-potential offerings. For example, a technology company might offer a core software product with add-ons and cloud services.