Strategic Planning: An Overview of Product Portfolio Models

In any type of business it is almost inevitable that some products or services will be more financially attractive to market than others. Ways are introduced in which strategic business units can evaluate the kinds of products and services they are offering. The suggestion is made that it may be in the interests of some units to drop certain kinds of products or services because they are unable to be operated profitably. Other products or services, however, may benefit from investment. Various product portfolio models exist which help in the task of classifying products or services. The various approaches are discussed,and how to develop the GEC‐McKinsey type of model with the aid of a spreadsheet is shown.