How do you conduct a product portfolio analysis and a product lifecycle analysis? (2024)

Key takeaways from this article

• Plot on a matrix:

  To conduct a product portfolio analysis, plot your products on a matrix based on market share and growth potential. This visual tool helps you quickly identify which products need investment or adjustment.

• Understand lifecycle stages:

  For product lifecycle analysis, familiarize yourself with each stage—introduction, growth, maturity, decline. Knowing these can guide when to innovate or when to phase out products for better strategic planning.

This summary is powered by AI and these experts

• Amy Wenslow Product Strategy to Grow Product…
• Prateek Nigam Linkedin Top Voice for Product…

• Prateek Nigam Linkedin Top Voice for Product Vision💡| Building Intent360 | 5X SaaS B2B Start Up Team

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  Product portfolio analysis involves evaluating and categorizing a company's range of products. Steps include listing products, categorizing them based on characteristics, analyzing market performance, evaluating financial aspects, ensuring strategic alignment, assessing risks, and allocating resources. This ongoing process informs decisions on introducing, investing, or discontinuing products to align with business goals.

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  To conduct a product portfolio analysis, use frameworks like BCG Matrix (evaluates products based on market growth and market share) or GE-McKinsey Matrix (assesses market attractiveness and competitive strength). Identify which products are Stars, Cash Cows, Question Marks, or Dogs to allocate resources effectively.For product lifecycle analysis, track each product through stages: Introduction, Growth, Maturity, and Decline. Analyze sales data, market trends, and profitability at each stage to inform decisions on innovation, investment, or phasing out. Use tools like SWOT for deeper insights.

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• Mario Stark

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  For a company active in patient monitoring, I was asked to analyze and develop the product strategy. In the medical devices sector a nuanced understanding of multiple factors ensures the product-market-fit:1. Identifying the primary users and decision makers.2. Defining the value proposition based on unique benefits & advantages.3. Addressing a genuine clinical need. 4. Essential product features that solve real clinical problems, enhancing usability and functionality. 5. A clear understanding of willingness to pay. 6. A seamless and intuitive user experience. Each of these components plays a significant role in ensuring that a medical device not only enters the market successfully but also achieves sustained adoption and growth.

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• (edited)

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  At Goldman Sachs, I strategically analyzed and optimized our digital product and API portfolio by:1️⃣ Leveraging the GE Multifactor Portfolio Matrix, focusing on industry attractiveness and business strength to allocate resources2️⃣ Integrating McKinsey's frameworks to balance innovation and complexity, systematically evaluating and ranking products by calculating cost-performance ratios3️⃣ Employing advanced tooling and analysis techniques for customer segmentation, sentiment analysis, market basket analysis, what-if analyses, and price optimization Backed by data and analyses, I led my team's agile approach, dynamically adapting our portfolio strategy by customer segment, maximizing satisfaction and annually recurring revenue.

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• Tushar Arora Aspiring Empathetic Product Leader | Customer-obsessed mindset | Results-oriented communicator

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  Product Portfolio AnalysisKey: Evaluate your products to guide investment decisionsGather data: Sales, profit, market share, growth potential for each product.Use a framework: BCG Matrix (Stars, Cash Cows, Question Marks, Dogs) is common.Make decisions: Invest, maintain, phase out, or carefully nurture based on category.Product Lifecycle Analysis (PLC)Key: Know where a product sits in its lifespan to plan accordinglyDefine stages: Introduction, Growth, Maturity, Decline.Track metrics: Analyze sales, market share, and competition trends over time.Strategize by stage: Focus on adoption, differentiation, profitability, or phase-out.

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  Imagine the birth of a product, a momentous introduction to the world. This is the inception, the first chapter of its narrative. As it takes its initial steps, growth unfolds; akin to the protagonist discovering its strengths. Maturity follows, a seasoned character in the market's story. Finally, the curtain falls with a graceful decline, a denouement marking the end. Understanding each phase is key, guiding businesses in crafting a tale of success.

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• Vikas Goyal Building Exceptional Products | Product Leader | Product Manager | Product Architecture | Gen AI Enthusiast | Program / Project Manager | Business Strategy | Product Owner

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  The lifecycle of a product is highly dependent on how well the product fits its market. I focus on the product-market fit, when analyzing a product’s life cycle. A better fit allows a product to enter the growth phase sooner & stay longer at the maturity phase. With a good understanding of the market, you are able to foresee the decline phase when you realize the demand has gone down, or a new tech has replaced that demand. Understanding the market needs also allows pivoting at the start of the decline phase & extends the maturity phase. Look at how Samsung pivots with a few upgrades to older versions, calls it a completely new edition, and extends the maturity phase, by creating a new life cycle at the start of the decline phase.

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• Namita Velgekar Product | Developer Relations @Packt

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  What it is: Product lifecycle analysis involves studying the various stages a product goes through from its introduction to market, growth, maturity, and eventual decline or withdrawal.Process: It includes evaluating sales data, market trends, customer feedback, and technological advancements to understand the current stage of a product in its lifecycle.Tools used: Techniques like the Product Lifecycle Management (PLM) software, data analytics, and customer surveys can aid in gathering information and insights.

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• Abdul Hannan Rai Product Operations | Software and eCommerce Product/Project Management Expert🚀 Led Growth of a Startup from Scratch to $10M 🚀

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  Consider Nintendo's Super Mario franchise. Introduced in the 1980s, it experienced growth and maturity with iconic releases. However, certain games may enter the decline phase. Nintendo adapts strategies—releasing remastered versions, and introducing new characters—to extend the franchise's lifecycle, showcasing effective product management throughout its evolution.

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  Product lifecycle (PLC) analysis is a strategic tool for assessing a product’s progression through distinct stages, from inception to obsolescence. It involves a thorough examination of the product’s market performance, financial metrics, customer feedback, and competitive landscape. By comparing collected data against typical PLC characteristics and industry benchmarks, you can identify the current stage of the product lifecycle. This understanding enables effective resource allocation, prioritization of product development, and informed decisions regarding market entry timing, market expansion strategies, and product extension, divestment, or repositioning plans.

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  Product Portfolio Analysis provides a strategic roadmap for businesses, ensuring alignment with overall goals. By assessing risks, optimizing resources, and fostering innovation, it becomes a compass for decision-making, guiding companies to create a cohesive and customer-centric product mix.Product Lifecycle Analysis empowers businesses to adapt and thrive in a dynamic market. By optimizing resources, planning strategically at each stage, and fostering continuous improvement, it allows for efficient financial management and the creation of a diversified, resilient product portfolio.

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• Mohammad Fayoumi, ISM Sales Manager, ISM diploma, Food technologist

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  Here, a collaboration with different departments especially marketing and R&D will keep the organization 1-step ahead of rivals and will make continuous diversification to satisfy different markets and customers.Also if a product took longer than expected to grow enough, or another entered declining phase the impact will not be huge if the portfolio is mature and diverse enough, understanding market needs and listening to customers is vital to be updated and respond quickly to avoid product losses in share or profitability

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• Jonathan Gan Entrepreneur | Strategic Product Leader | Operations Expert | Driving Innovation for Business Growth

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  In my experience as a CPO, product portfolio and lifecycle analysis offer invaluable benefits. Portfolio analysis aligns products with strategic goals, optimizing resources and ensuring a diverse yet cohesive product mix. It aids in identifying high-performing products for investment and those needing adjustment or discontinuation.Lifecycle analysis, on the other hand, guides proactive decision-making. Understanding each phase helps allocate resources effectively—investing in growth, optimizing in maturity, and strategically managing decline. It ensures products stay relevant, maximizing their lifespan and the overall health of the portfolio. Both analyses together foster a dynamic, resilient product strategy.

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  Product portfolio and lifecycle analysis are like the Swiss Army knife of product management—they offer everything you need to sharpen your strategy. By evaluating where each product stands in its lifecycle, you can optimize resources, spot innovation opportunities, and align your product goals with overarching business objectives. This approach not only boosts performance but also ensures you're ready to pivot when the market throws a curveball.As Itamar Gilad notes in Evidence-Guided: “Lifecycle analysis helps you anticipate customer needs and manage risks, turning uncertainty into opportunity.”

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• Namita Velgekar Product | Developer Relations @Packt

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  Strategic Insights: Helps in identifying high-potential products, allocating resources effectively, and aligning with market demands.Risk Mitigation: Allows for the identification of underperforming products early, reducing potential losses.Decision Making: Facilitates informed decision-making regarding product investments, marketing strategies, and resource allocation.

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• Ido Navarro Product Manager @Elementor | 👨💻 WordPress Developer |⚡ Web Creator | 🚀 Elementor Expert | 🤖 Junior ChatGPT promoter

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  In my experience, while product portfolio and lifecycle analysis are invaluable, they come with challenges. Data can be incomplete or misleading, oversimplifying the complex nature of markets. They might overlook external influences and create biases. Constant updates are necessary to maintain relevance. It's crucial to acknowledge these limitations, use these tools as part of a broader strategy, and always complement them with market insights and flexibility. This approach ensures a more nuanced and effective product management strategy.

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• Ana Bacioiu Head of Product | Microsoft, Expedia, Start-ups| MBA, Computer Science

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  Product portfolio management needs to account for the relationships between products. Products may be interconnected in several ways - they may complement each others' capabilities or they may cannibalize each other (as it happens with new, more technologically advanced products that displace the previous iteration). Carefully orchestrate NPIs (new product introductions) and other moves to holistically optimize accross the portfolio.

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  One of the biggest challenges, often overlooked, is integrating product portfolio and lifecycle analysis with other business processes. Effectively incorporating these insights into strategic planning, marketing, operations, sales, and R&D workflows is crucial for maximizing impact, driving growth, and ensuring cohesive execution.

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  See Also

  8.6 Portfolio Planning and Corporate-Level Strategy – Strategic Management
• Ibrar Khan Product Manager | Digital Transformation

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  Successful product portfolio analysis requires choosing a method that can adapt to specific needs and desired level of complexity. Some of the methods out there oversimplifies complex business scenarios while other methods demand expertise or extensive data inputs. Also there's no product portfolio analysis method that doesn't have its limitations.

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• Aisha Peenwal Building FinnUp (0 to 1) | Product Lead @ FinnUp | Simplifying Debt

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  Beware of data limitations – incomplete information or siloed systems can paint a distorted picture.Don't oversimplify; rigid categories might miss synergies or potential disruptors between seemingly unrelated products.Remember, human biases can skew analyses. Challenge assumptions and gather diverse perspectives to avoid blind spots.And lastly, the market itself is the ultimate wildcard. Be prepared to adapt your models and insights as trends shift and new competitors emerge. Embrace these challenges as opportunities to refine your approach.

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  - Validating data sources: I cross-reference information with multiple reliable sources to ensure the validity of my analysis methods.- Incorporating diverse criteria: My evaluations include various perspectives, not just financial metrics, but also customer satisfaction and market trends.- Assessing external impacts: Regularly, I assess how competitors, market regulations, and industry trends affect our products.- Experimenting and gathering feedback: To test hypotheses, I conduct experiments and collect customer feedback for real-world validation.- Regular revisions and updates: I continually revise and update the analysis to adapt to changing market conditions, keeping our product strategy relevant and informed.

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• Jonathan Gan Entrepreneur | Strategic Product Leader | Operations Expert | Driving Innovation for Business Growth

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  Overcoming challenges in product portfolio and lifecycle analysis requires a holistic approach. Firstly, blend quantitative and qualitative data for a comprehensive view. Embrace agile methodologies to adapt swiftly to market changes, reducing the impact of uncertainties.Regularly update analyses with real-time data, fostering a more adaptive strategy. Foster a culture of continuous learning within the team, encouraging proactive responses to challenges. Embrace technology and analytics tools to enhance accuracy and foresight, ensuring a dynamic and resilient approach to product strategy.

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• Swathi Chirravuri Head of Strategy l Building Neurozwap I Neurozapien I Business, Brand and Product | Certified PSPO I Digital Product Management IIM - Vishakapatnam l MBA ( Digital Business) UPES Dehradun l

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  To address the challenges in product portfolio and lifecycle analysis, start by rigorously validating and cross-referencing data from diverse sources to ensure accuracy. Expand the evaluation criteria to include a broad range of factors, such as competitive landscape, regulatory impacts, and emerging market trends. Regularly test hypotheses through controlled experiments and seek continuous feedback to validate assumptions. Keep the analysis dynamic by frequently updating it to reflect the latest market developments and external influences. This approach helps maintain a robust and adaptable strategy, allowing for informed decision-making in a rapidly evolving environment.

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• Chaitanya S. | Product Owner | SAFe® 6.0 POPM | CSP-PO® | | A-CSPO® | CSPO® | AI-900 | PL-900 |

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  Invest in robust data collection and analytics capabilities.Use a combination of qualitative and quantitative methods for analysis.Regularly review and update assumptions and models based on market feedback and new information.Collaborate across departments to gain diverse perspectives and insights.Monitor external factors and adjust strategies accordingly.

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• Namita Velgekar Product | Developer Relations @Packt

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  Data Collection Strategies: Employ robust data collection methods and analytics tools to gather and analyze relevant information.Streamlined Processes: Develop streamlined frameworks for managing diverse product portfolios and lifecycles.Continuous Monitoring: Regularly update analyses to adapt to changing market dynamics.

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• Ana Bacioiu Head of Product | Microsoft, Expedia, Start-ups| MBA, Computer Science

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  If you pay attention to the 5 Ps of marketing (Product, Price, Promotion, Place, and People) you'll find other levers to experiment with and inform your strategy, beyond what we usually think of as Product. For example, launching a product in a new market or trying a novel pricing model may breathe new life and extend its lifecycle. This kind of launch would also enable hypothesis testing - that feeds new product ideas and keeps the whole portfolio fresh and balanced.

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• Namita Velgekar Product | Developer Relations @Packt

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  Strategic Planning: Use insights from the analysis to make informed decisions about product development, marketing, pricing, and distribution strategies.Resource Allocation: Allocate resources based on the lifecycle stages of different products—investing in new products, sustaining growth for mature ones, or divesting declining ones.Adaptation: Continuously adapt strategies based on changing market conditions and lifecycle stages.

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• Srinivasan M.

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  - Identify insights aligning with strategic goals.- Prioritize actionable recommendations.- Integrate insights into product strategy.- Develop initiatives based on recommendations.- Allocate resources in line with strategic priorities.- Establish metrics to measure strategy effectiveness.- Monitor progress and adapt based on performance.- Foster cross-functional collaboration for alignment.- Communicate strategy changes and rationale to stakeholders.- Continuously review and refine strategy based on analysis and feedback.

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• Dhruv P. Product at Decipher Health | IITR | GrowthX

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  Define clear product portfolio objectives, goals, and KPIs.Conduct regular product portfolio reviews and updates.Align product lifecycle stages with strategic priorities and initiatives.Develop and implement targeted strategies and action plans for each product or product category.Monitor and measure performance, progress, and impact regularly.

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• Chaitanya S. | Product Owner | SAFe® 6.0 POPM | CSP-PO® | | A-CSPO® | CSPO® | AI-900 | PL-900 |

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  Use insights from product portfolio analysis to prioritize investments, divest underperforming products, and balance the portfolio for growth and stability.Incorporate product lifecycle analysis into product planning, pricing, and marketing strategies to maximize revenue and profitability at each stage of the lifecycle.Continuously monitor market dynamics and adjust product strategies in response to changing conditions.

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• Gleb Yuchenkov Product Lead - Moscow Exchange | Finuslugi | Ironman 🏊🏻🚴🏻🏃🏼♂️

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  Enhance your product portfolio and lifecycle analysis with market maturity stages and the product adoption curve to get a nuanced understanding of your market position and customer segments.Try mapping products against the four stages of market maturity—introduction, growth, maturity, and decline—and aligning them with the six segments of the product adoption curve (innovators, early adopters, early majority, late majority, laggards).This analysis helps to discover sales and growth patterns, highlighting opportunities for revitalization in mature markets by targeting new customer segments. This may help breathe new life into your products, ensuring they meet the distinct needs of each customer segment at every market phase.

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  Continuous learning and adaptation are essential in today's rapidly changing market. I've always fostered a culture of continuous improvement within teams, encouraging them to stay updated with industry trends and promote knowledge sharing across departments. This approach ensures we remain agile and innovative, keeping our products relevant and competitive.

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• Abdul Hannan Rai Product Operations | Software and eCommerce Product/Project Management Expert🚀 Led Growth of a Startup from Scratch to $10M 🚀

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  In some cases, product portfolio and lifecycle analyses might oversimplify complexities, fostering a false sense of predictability. Relying solely on historical data can hinder adaptability to rapidly changing markets. Embracing uncertainty and continuously reassessing strategies may be more valuable than rigid adherence to predefined product life stages, particularly in industries marked by disruptive innovation and unpredictable consumer behaviors. Flexibility and responsiveness could sometimes outweigh the perceived certainty provided by traditional portfolio and lifecycle models.

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• Ibrar Khan Product Manager | Digital Transformation

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  The lifecycle model is not a predictive tool for forecasting but a model that helps you reflect on how your product is performing so the right strategic decisions can be made.

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• (edited)

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  While the product lifecycle (PLC) concept is universal, its applications vary significantly across different product categories and industries. For example, in the IVD industry, the rigorous regulatory approval process can extend the introduction phase, while innovations can shorten the lifecycle of legacy technology. Industry-specific factors such as clinical utility, disease prevalence, and reimbursem*nt policies influence a product’s lifespan. The complexity of IVD products, including instruments, test kits, analysis and reporting software, and services, often requires PLC analysis at both component and system levels to ensure a holistic view of the product’s journey. It is important to use metrics tailored to your industry and products.

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