Star product: has a significant market business email list share in an overall market that is constantly growing. For this type of product, companies should focus on investing in order to gain market share in the future.
Cash cow products: have a significant market share in an overall market, but the growth rate of this market is low. Enterprises can invest in this type of product, but should invest less resources than star products, or adopt a fat skimming strategy to take advantage of market share to make profits at a high price first, and then exit at a low price.
Problem product: In a highly growing market, but has yet to gain a significant market share. This type of product needs to be re-evaluated to determine whether it has the potential to become a star product, or degenerate into a skinny dog product.
Thin dog products: The market where the market is growing is slow and the share is low. This type of product generally abandons or changes its value proposition, such as serving as a competitor to its peers at the strategic level of the enterprise.
2. Product Portfolio
After the existing products are sorted out, we can focus more on high-return products, but if a company wants to continue to make profits, it also needs to pay attention to the development of future products, and consider the combination of products as a whole.
The concept of product portfolio can be understood as the packaging of enterprise products. The products in the package may be interdependent or independent of each other, but after being packaged as a whole, they are managed as a whole to achieve the overall strategic goal.
The goals of the product portfolio are: value maximization, program balance, strategic synergy, pipeline balance and financial soundness.
Value maximization: According to the input and output of the product, confirm the combination of maximizing value to allocate limited resources
Project balance: eggs cannot be put in the same basket, high risk and low risk need to be balanced, long cycle and short cycle need to be balanced
Strategic synergy: Ensure that the strategic goals of the portfolio are consistent with the upper-level strategy of the enterprise Pipeline balance: Ensure that resources are concentrated or reused to achieve a balance between pipeline resource requirements and available resources
Financially sound: Ensuring that the products in the portfolio can deliver projected financial income