Most companies have a considerable number of items in their product portfolios or groupings. In expanding markets, any company not growing rapidly risks falling behind for good, so the focus is on bringing out new items or lines or adjusting existing products. A portfolio’s options include expanding geographically to new markets or segments and adding to existing market operations through new product lines. The goal is a balanced product and market portfolio – an appropriate mix of new, growing, and mature products that provide a sustainable competitive advantage in multiple markets. Many marketers assess their portfolio and its opportunities by using a quadrant model that lets them analyze the products in the mix according to growth rates and market share positions.
Another approach used to assess a product portfolio is the market-product-business model. This approach helps uncover interconnections in common target markets, shared R&D objectives, similar technologies, and shared marekting experiences. By exploring interlinkages between these three areas across global markets, it is possible to exploit increasing market similarities by setting up appropriate strategic business units or standardizing product lines, products, and marketing programs.