How can you maximize the benefits of a diverse product portfolio?

A healthy portfolio will spread risk on various dimensions, to avoid over-reliance on a single market or product line. The BCG matrix assesses performance in terms of market share and market growth rate, but other important factors include market attractiveness, supply chain risk, competitive intensity etc. A product could technically be a 'dog' (low relative market share in a low growth market) but enable other opportunities (sometimes called "leverage"). Another useful tool is McKinsey's Three Horizons model, which advocates 'third horizon' investment in technologies which won't have a clear business case, but are a pipeline of potential future investments. Also, review the portfolio at least annually, depending on market volatility.

Flexibility and Adaptability: Be willing to adapt your product portfolio in response to changing market dynamics and customer preferences. Make informed decisions about discontinuing or modifying products that are no longer aligned with your strategic goals. Strategic Partnerships: Consider forming strategic partnerships with other businesses to enhance your product offerings. This can help you access complementary products or reach new customer segments.

Maximize the benefits of a diverse product portfolio by cross-promoting and integrating products. For example, if you have a project management SaaS and a collaboration SaaS, integrate features to streamline project collaboration and market them as a powerful suite.

Adapt to Market Changes: Stay agile & be prepared to adjust your product portfolio. Monitor industry trends & customer feedback to ensure your products remain relevant Customer Feedback: Solicit feedback from customers & use it to refine & improve your products. Communicate with customers transparently about product updates to maintain trust & loyalty. Risk Management: Diversify UR product portfolio to mitigate risks associated with dependence on a single product or market segment. Develop contingency plans to address unexpected challenges or disruptions. Sustainability & Corporate Responsibility: Consider how U diverse product portfolio aligns with sustainability & corporate responsibility goals, these factors can enhance brand reputation.

Rethink diversification beyond product extension - reconsider repricing! ?? Repricing products for new segments is often overlooked. But it can expand reach immensely. Examples: - Premium model with upgraded materials - Budget offering with stripped features - Region-specific pricing With the right messaging, significant value can be unlocked through pricing.

When multiple products and platforms are competing for scarce resources, portfolio management is a good way to optimize your resources. You can take small steps to set up portfolio management in your team: 1. Establish shared goals for the portfolio of products 2. Categorize products using a Wardley Map in which you map products based on their visibility to your users vs the type of product 3. Foster product collaboration through portfolio reviews By bringing teams together, you encourage an exchange of best practices, better handling of shared resources, and cross-team learning.

A key exercise is to understand the portfolio in-depth. It brings to light pros that can be leveraged and cons that need to be watched out for. Use the acquired knowledge to identify cross-selling opportunities, both in B2C & B2B. This helps expansion of CLTV. There is also ample space to cater to different customer needs & budgets, making it easier to upsell too. But with diversity comes many challenges. Key one to watch out for is poor communication between product teams leading to duplication of effort, missed opportunities, and inconsistencies in product strategy. Mitigate this using clear communication channels, team collab, unified PM framework, regular cross-team check-ins, empowering product teams to make decisions.

I agree, yes a diverse product portfolio indeed opens up multiple avenues for growth and risk mitigation. However, one risk that's crucial to be aware of is the potential for brand dilution. There's a chance that the core brand message or value proposition might get diluted or confused in the eyes of the consumer

By following these steps and maintaining a focus on customer needs, market dynamics, and strategic alignment, you can maximize the benefits of a diverse product portfolio while ensuring long-term success and growth for your business.

What worked quite well in my experience, is to strategically cross-promote complementary products within the portfolio to encourage bundled purchases and increase overall customer value.