What's Your Portfolio Strategy?
This week, a new strategy client asked for some clarity around their product strategy and where their marketing and sales efforts should go at the moment, given their reduced COVID-19 cash flow.
We drafted up a 2 x 3 on the whiteboard, and we mapped out a growth-share matrix. Why not create your growth-share matrix to come up with a portfolio strategy?
Step 1. On a 2 x 3 matrix, plot each of your product/service offerings by the likely market share you can achieve and the expected growth in that market space.
Step 2. Calculate an Expected Return for each offering by multiplying the potential profit level by the % chance of success. The larger the Expected Return, the larger the circle you should draw for each product.
Step 3. Now step back and assess which offerings should take priority and label them 1,2,3,4,5,6 etc. Large circles are good to prioritise, especially those in high growth markets or/and markets where gaining a dominant market share advantage is probable.