Classic Product Portfolio Analysis

A classic product portfolio analysis focussing on market and competition aspects is conducted and aligned with the product portfolio matrix. Depending upon the company in question, different types of product portfolio analyses can be carried out. The two best known are:

  • the Boston Portfolio (see Figure beside) developed by the Boston Consulting Group. Here Strategic Business Units (SBUs) of the company are analysed, and a matrix chart produced placing their relative market share in relation to their market growth rate. Depending upon the position in the chart, this leads to four types of SBU: cash cows, rising stars, poor dogs, question marks.
  • the competitive advantage / market attractiveness portfolio developed by McKinsey. Here the relative competitive advantage and market attractiveness are characterized in more differentiated fashion using several indexes, and the nine types of SBU are more differentiated.