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Product Portfolio Management 1 PRODUCT PORTFOLIO MANAGEMENT By Student’s name Code+ course name Instructor’s Name University Name City, State Date of Submission
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Product Portfolio Management 2 Product Portfolio Management Introduction In doing business, most companies strive to diversify their product offering by selling more than one product or service to the market. This trend is very common in the retail market outlets whereby the retailer stocks different products. A similar trend is also in the service industry where service providers offer their customers a wide range of services. For instance, in the salon industry, a company can offer its clients hair dressing services, pedicure, manicure, facials and make-up (Antaki, Schiffauerova & Thomson 2010, p.291). Product portfolio is very advantageous for most companies because it enables the business to keep going, especially during tough economic times. In fact, a company that deals with a single line of products faces grave difficulties in doing business as opposed to one that has diversified its products and services (Wan, Evers & Dresner, 2012, p.316). Another advantage of product portfolio through diversification is the fact that the company is in a position to stock a wide range of products at different stages of their life cycles. Conversely, the diversification enables the business to boost sales, especially in the case of fast moving products boosting the sales of slow moving products. The following paper analyses the concept of product portfolio, especially relating to the benefits that a company draws from this particular type of business approach (Artto, Kulvik, & Poskela, 2011, p.408). As such, the analysis focuses on the portfolio management structure of two leading multinationals from the eastern culture, which are Samsung Corporation from South Korea and the Sony Corporation from Japan (Voss, 2012, p.567). The following analysis entails how these two companies employed the concept of product portfolio to maximise their respective sales volumes as well as expand their global prevalence and market control.
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Product Portfolio Management 3 Review of Product Portfolio Management a) Goals of Portfolio Management In undertaking product portfolio management, companies strive to improve their streams of earnings through operating in a diverse range of products. As such, the key goals of product portfolio include value maximization, striking a balance in business operations, alignment of business strategy, pipeline balance, as well as efficiency in business operations. Value maximization entails allocating resources to the right business units in order to maximize their output considering their objectives such as ROI, profitability and acceptable risk (Levandowski, Corin-Stig & Bergsjö, 2013, p.68). A balance in business entails striking the desired balance of projects via a number of parameters, such as risk level versus returns, and short-term versus long-term goals, considering different markets, technologies and business arenas. Business
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