ABSTRACT
The management of a single product or product class through its life cycle represents only one dimension of the strategic problem facing companies. Most companies are engaged in the management of several products through their respective cycles. The administration and integration of a number of separate strategic business units (SBUs) which, in organisational terms might be departments, plants, divisions or separate companies owned by a single parent company. The portfolio analysis developed by the Boston Consulting Group(BCG) concentrates upon the positive and negative cash flows associated with businesses which are classified in terms of their relative market share and the growth rate of the industry in which they are located. The number of companies reported to use planning techniques based upon the BCG approach and alternatives which are akin to it now runs into several hundreds. A balanced product portfolio represents a unique match of business capabilities and market opportunities.
