Portfolio Analysis

Portfolio analysis is a review of the components included in a mix of products to make decisions that drive overall return.

Strategic decisions require a portfolio analysis that allows a large company to compare its business units on some relatively simple attributes. Although appearing quite simple at times, portfolio models to allow for a relative comparison between the strengths and situation analysis of the different business units within the organization. Portfolio analysis techniques such as the BCG matrix illustrate the strategic position of your products on the market and their strategic importance in the company. They enable you to determine whether the product belongs to the "question marks," the "stars," the "cash cows," or the "poor dogs" in your range. Based on this analysis, you will be able to make vital decisions that determine how to deal with the respective product. In one case, it can make sense to increase the market share through targeted marketing measures, and in another case, it makes more sense to pursue a divestment course and take the deficit product from the market or bring it back into profitability through targeted savings.

When a company markets a variety of products or even services, it must conduct portfolio analysis regularly. This means examining each product individually in terms of profitability, contribution to the company’s income, and growth potential. This analysis facilitates the classification of products that are not profitable at all or play unsuccessfully within the organization. The products are categorized by pre-defined criteria such as sales value, market share, gross profitability, contribution margin, and life cycle. The results might suggest discontinuing the products soon or planning offers or rectifications. It might also signify that the company must increase its investments and efforts to some star products that have a higher potential. The analysis is made to enhance the global portfolio’s performance since the ultimate goal is maximizing profit. The outcome of Portfolio Analysis serves as an input for the SWOT Analysis and therefore plays a substantial role within a strategic marketing plan and execution.

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What Sets divia Apart?

Steps to Portfolio Analysis Success

We work on designing the business portfolio, developing strategies for growth and downsizing and helping you find products and businesses you should consider in the future.

Call

We want to understand your business and your goals before asking you to invest. We dig deeper into your existing marketing funnel activities such as lead generation, marketing automation, content marketing, and much more based on your objectives, expectations, competitions, and trends.

Internal Discussion

Based on the information gathered during the consultation, we will create documentation encompassing your implementation plan. We will discuss with our team of digital marketers and strategists how to accelerate your brand's growth and revenue through marketing planning and tactical execution.

Offer

Identifying your target group, engaging them throughout the buyer’s journey requires specific solutions. Once we are through with “behind the scenes” and creating project implementation processes and marketing strategies, we will make you an offer, which is often tailor-made for you.

Project Kick-Off

Once the implementation plan is approved, we will begin its execution. The goals you set are what will keep us aligned to come together as one team. We are here to transform you digitally and create processes and solutions to make sure you are getting the results that fuel business growth.