Strategic portfolio analysis

Strategic portfolio analysis
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Strategic portfolio analysis involves identification and evaluation of all products or service groups offered by company on the market (so called product mix) and preparing specific strategies for every group according to its relative market share and actual or projected sales growth rate. It can be also used to make strategic decision about strategic business units.

Portfolio analysis in strategic management allows to answer key questions how to shape the present and future business portfolio (of product or services) in order to reduce the risk of functioning in a changing environment, and increase the effects of the implemented strategy.

Fig. 1. BCG growth-share matrix - one of the most popular strategic portfolio analysis method

Methods of portfolio analysis used in strategic analysis