What are the techniques for balancing a product portfolio?

Balancing a product portfolio involves diversification, regular review, lifecycle management, and strategic alignment.

Diversification is a key technique in balancing a product portfolio. This involves having a mix of products at different stages of the product lifecycle. Some products may be in the growth stage, others in the maturity stage, and some in the decline stage. This ensures that the company is not overly reliant on a single product or a small group of products. It also allows the company to take advantage of opportunities in different markets and to spread risk.

Regular review of the product portfolio is also essential. This involves analysing the performance of each product in terms of sales, profitability, market share, and growth potential. Products that are underperforming may need to be repositioned, rebranded, or discontinued. Regular review also helps to identify gaps in the portfolio that could be filled with new products.

Lifecycle management is another important technique. This involves managing each product throughout its lifecycle, from introduction to growth, maturity, and decline. Different strategies may be needed at each stage. For example, during the growth stage, the focus may be on increasing market share, while during the maturity stage, the focus may be on maintaining market share and extending the product's lifespan.

Strategic alignment is also crucial. This means ensuring that the product portfolio is aligned with the company's overall strategy and objectives. For example, if the company's strategy is to be a leader in innovation, then the product portfolio should include a significant proportion of new and innovative products. If the company's strategy is to target the premium segment of the market, then the product portfolio should include high-quality, high-priced products.

In conclusion, balancing a product portfolio is a complex task that requires a combination of diversification, regular review, lifecycle management, and strategic alignment. It is a dynamic process that requires ongoing attention and adjustment.