Aim of Portfolio analysis 3.1.2

Portfolio analysis is a method of analysing a business' product according to their potential. It is based on the Boston matrix, which assesses each product in terms of the market growth in its segment plus its market share. It can be used to priorities resources such as cash to put behind its marketing spending. It may also be the starting point for selling off some brands to focus on others.

The aim is to provide a framework for a business to look at the opportunity cost of investing in its different product, for example where to spend limited marketing budget for the greatest return. This can be developed into international portfolio analysis, which can look at a country's attractiveness, for example market size, compared with its strength, for example market share.

For more on Boston Matrix, go to...
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