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TheProductPortfolio
1970byBruceHenderson
Categories:Strategy
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moreaboutBruce
Thevalueofaproductdependsonitsobtainingaleadingshareofitsmarketbeforegrowthslows.
Everyproductshouldeventuallybeacashgeneratorotherwiseitisworthless.
Onlyadiversifiedcompanywithabalancedportfoliocanuseitsstrengthstotrulycapitalizeongrowthopportunities.
Tobesuccessful,[Link]
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Fourrulesdeterminethecashflowofaproduct.
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observation,explainedbytheexperiencecurveeffect.
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[Link],[Link]
cannotbereinvestedinthatproduct.
[Link],theygeneratelargeamountsofcash,inexcessofthe
[Link],andshouldnot,[Link],iftherateofreturnexceeds
thegrowthrate,thecashcannotbereinvestedindefinitely,exceptbydepressingreturns.
[Link],buttheprofitmustbereinvestedtomaintain
share,[Link],exceptinliquidation.
[Link]
marketbeforethegrowthslows.
Lowmarketshare,[Link]
supplied,[Link],iftheyonlyholdtheirshare,[Link]
[Link],highgrowthproductisaliability
[Link].
Thehighshare,[Link],[Link]
staysaleader,however,[Link]
becomesthecashcow,providinghighvolume,highmargin,highstability,security,andcashthrowoffforreinvestmentelsewhere.
Thepayoffforleadershipisveryhighindeed,[Link]
growthphasecanbeveryattractive,[Link]
[Link]
[Link].
[Link]
[Link].
[Link]
has:
starswhosehighshareandhighgrowthassurethefuture
[Link]
2/4
2/24/2016
[Link]
cashcowsthatsupplyfundsforthatfuturegrowthand
questionmarkstobeconvertedintostarswiththeaddedfunds.
[Link],ortogetoutandcutthelosses.
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CEOAgenda
AheadoftheCurve
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GlobalAdvantage
Leadership&Talent
RockettoGrowth
SixSimpleRules
StrategyNeedsaStrategy
Sustainability
Industries
[Link]
3/4
2/24/2016
[Link]
Automotive
Consumer&Retail
Energy&Environment
FinancialServices
Hardware,Software,&Telecommunications
HealthCare
IndustrialProducts&Processes
Media&Entertainment
PrivateEquity
PublicSector
SocialSector
Transportation,Travel,&Tourism
BusinessTopics
ChangeManagement
CorporateDevelopment&Finance
Innovation&Growth
Marketing,Sales,&Pricing
Operations
People&Organization
PostmergerIntegration
Strategy
Technology&Digital
Transformation
Viewpoints
Classics
NowIstheTime
TED@BCG
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