Portfolio
Architecture
The portfolio architecture is the structure in which the commercial activity of a company is displayed. It shows the set of products and services it has, how they are related to each other and the customers it is aimed at. The goal is to be clear about the foundations of the company in order to be able to intervene with criteria and innovation and to confidently show it to potential buyers, partners or investors.
Why do we
need one?
A well-constructed portfolio architecture serves to define the strategy that the business wants or should follow on a commercial level. It highlights everything that is marketed or intended to be marketed and allows for a profitability analysis. It is also the best way to compare proposals from different businesses in the same sector and to see which audiences the company can target.
What does it
consist of?
1
Definition of the portfolio of services or products
We structure all the commercial activity of the business based on its products, services and how they relate to each other. From the number of ranges that exist and are marketed, to the coherence between them and the depth of the variants that exist. We should always take into account the production requirements, the distribution system and other aspects in order to be able to intervene in them in the future.
2
Market analysis
This analysis helps us to assess the size of a particular market in the industry the company plays in and identify factors such as market value, customer segmentation, buying habits and current trends. It gives a complete picture of the industries in which the company is interested and helps to anticipate any risky situations.
3
Competitor analysis
The objective here is to identify who we are competing with, detecting the strengths and weaknesses of these organizations in order to find an element that can be used to your advantage in the market. Here, we analyze factors such as price, the quality of products, and the extra services they offer, in order to turn threats into opportunities.
4
Presentation
Once we have the structure of the business in terms of product portfolio, it is a good idea to create a design document where they can be displayed. This will allow us to quickly analyze the situation and intervene in an organized and innovative way. It will also serve to show the fundamentals of the business to customers, partners and investors.
FAQS
-
What is the difference between a personal and a company portfolio?
The term “portfolio” is often used to describe documents created by professionals in any field where they show their work in a design space with images, videos, strategies and case studies. It should not be confused with the portfolio of products and services of a company, as the latter is a document that helps the company to structure itself and to showcase the business to partners and investors.
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Who is a portfolio architecture aimed at?
Firstly, it is aimed at the company's own employees, managers and partners so that they can better understand and intervene in their business activity. Secondly, to the entire audience that owns and may be interested in participating in the project. These could be buyers, potential customers, partners, investors or new suppliers and distributors.
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How do you classify products in a portfolio architecture?
If the aim is to analyze the profitability of products, they can be classified along two axes: market share and growth. In this way, star products with high sales and growth can be differentiated; Those that do not grow, but generate a stable volume of sales. Those that do not yet generate profit, but have a high growth potential. And those that do not generate sales, have no potential and would be a failure to invest in.
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What is the importance of product architecture?
Appropriate product portfolio management ensures that the company invests wisely in products that meet specific objectives. It also allows us to optimize technologies, distribution channels, prices and services between each product line, and allocate the right resources to optimize their performance in the market.
Related work
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