A Portfolio Matrix is a strategic management tool used by organizations to analyze and manage a group of products, services, business units, or investments.
It is a tool for allocating resources, linking business growth rate with relative competitive position of the firm.
Portfolio Matrix Analysis is an approach to corporate strategy in which top management views its product lines and business units as a series of investments from which it expects a profitable return.
Working of Portfolio Matrix
Portfolio matrices categorize business units or products based on key dimensions such as market growth, market share, industry attractiveness, or competitive strength.
By plotting these dimensions on a two-dimensional grid, companies can visualize their portfolio and identify strategic priorities.
It helps companies allocate resources efficiently and make informed decisions about growth, maintenance, or divestment of various business segments.