What Every Business Executive should know about the difference Between Product Portfolio & Business Portfolio
The business portfolio of a business organization usually constitutes of the investments and holdings along with the products and brands it is having. The product portfolio usually is different from a business portfolio and it consists of product mix in market segments. Business Executives try in making the products attractive to the customers falling into different segments. Both product portfolio and business portfolio help business organizations to achieve higher profits.
The content of a business portfolio usually include strategic business units or commonly called SBU. Business executives usually analyse the strategic business units instead of market. Star strategic business units are usually new business which is generating higher interest among public which usually need higher amount of capital. Cash Cows are Strategic Business Units which needs regular buyers.
In the case of product portfolios in Growth-Share Matrix business executives analyze the prospectus of the market of the product. The Strategic Business units usually analyse the internal factors while product analysis gives emphasis for marketing segments. Business executives generally see the market segments with respect to the product portfolio.