When a client ties up with a business organization, the client asks for the products that have been manufactured by the organization. At this time, the company needs to have a set of products which is to be presented to the client. The record or collection of products and the services of an organization is known as product portfolio. In the product portfolio, one can view and read a list of products proffered by an organization in the present and past years. The purpose of a product portfolio is to put forth the products which have been launched in the market since the inception of an organization. The products which are in the process of making can also be viewed in the portfolio.
The product portfolio consists of the products which have been made and launched by an organization till date. You will get to see various types of products that have been launched by a company from time to time. Who is responsible for preparing and managing the product portfolio? It is the managerial team who looks after every detail of the portfolio. From managing each product to preparing a complete portfolio, it is the work of the managers of different levels who carry out the process of the product portfolio.
Product Portfolio Management
In the product portfolio management, managers follow a program on business management which lets the managers inspect the products. The product management program also lets the managers know about the prospective opportunities, profits, and risks which further help them notch their targeted results. The prime part of the product portfolio management program is to cater the organization the imperative information on the stocks, knowledge on the share of each product in the market, chances of success of the brand, functional risks, and products that can gain high profits.
There are organizations such as retail sectors and IT sectors which follow the product portfolio management strategy.
Benefits of Product Portfolio Management
Product portfolio management involves several benefits which are as mentioned below:
- The product portfolios are emphasized more on the value part.
- The obstructions can be mitigated, bringing forth a strong partnership and development in business.
- You can decide the precise expenditures of the project.
- You can enhance the decision making and get a positive business result by making quick reports.
Goals of Product Portfolio Management
The objectives or goals of product portfolio management are enumerated below.
- Figure out the products that are on great demand in the current developing business market.
- Discard those products which do not turn out to be lucrative in the market.
- Bring those products into the surface which does not show rapid growth in the market.
- Modify and upgrade the products in the rising market.
- Distribute the resources to new and fresh products.
- Maintain a right balance in short-term as well as long-term objectives.
- Achieves the targeted balance of projects by taking various spheres such as technologies and business areas into account.
- Bolster the connection and communication to the corporate plans.
- It aims to maximize a wide range of procedures in order to obtain the goal of the value maximization.
- The profit targets can be accomplished with ease by the investors.