The Product/Service Portfolio Matrix Tool

Abstract

Strategy Question: How do we determine and prioritize which products/services need action?

Summary: This very important tool helps provide a perspective on where product/service improvements are needed relative to performance and margin parameters. It is designed to provide a concise “current state” assessment of product/service offerings using three categories: (1) No deficiency — competitive in both Product and Price/Cost areas (color coded white), (2) One deficiency — Product performance or Price/Margin deficiency (color coded gray); and (3) Two deficiencies — Product performance and Price/margin deficiency (color coded black). When these product/service deficiencies are displayed relative to the most important market segments (ranked in decreasing order of priority), the tool output serves as an insightful baseline from which to scope, frame, define and prioritize product improvement and margin-enhancement projects needed. Your list of potential projects begins here. Many of the prior tools come together at this point. Through previous tools, the markets, environment, and the current competitive positions of the products or services are understood. This tool helps to define a structure to pull all this information together in a simple way to add perspective toward defining and prioritizing potential actions.

Citation

Fairbanks, S. and Buchko, A. (2018), "The Product/Service Portfolio Matrix Tool", Performance-Based Strategy, Emerald Publishing Limited, Leeds, pp. 157-170. https://doi.org/10.1108/978-1-78743-795-120181013