How Do Companies Analyze Their Business Portfolio?
One of the widely used tools for portfolio analysis is the BCG Matrix. It categorizes a company's products into four quadrants based on market growth and market share: Stars, Cash Cows, Question Marks, and Dogs. This helps in determining where to invest, develop, or divest. Another popular method is the SWOT Analysis, which evaluates the strengths, weaknesses, opportunities, and threats related to each business unit.