Product Portfolio Matrix

The Product Portfolio Matrix is a 2x2 matrix used to evaluate and prioritize products and services. It helps to identify which products should be invested in, and which should be discontinued.

At a very high level, the Product Portfolio Matrix is used in the context of business, marketing, finance.

Product Portfolio Matrix quadrant descriptions, including examples
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What is the Product Portfolio Matrix?

A visual explanation is shown in the image above. The Product Portfolio Matrix can be described as a matrix with the following quadrants:

  1. Stars: Highly profitable and have a strong competitive position in the market (e.g. Apple iPhone)
  2. Cash Cows: Highly profitable but have a weak competitive position in the market (e.g. Microsoft Office)
  3. Dogs: Weakly profitable and have a weak competitive position in the market (e.g. Sony Walkman)
  4. Question Marks: Weakly profitable but have a strong competitive position in the market (e.g. Google Glass)

What is the purpose of the Product Portfolio Matrix?

The Product Portfolio Matrix is a 2x2 matrix that is used to evaluate and prioritize products and services. It helps to identify which products should be invested in, and which should be discontinued. The matrix is divided into four quadrants, each representing a different strategy for the product. The four quadrants are: Stars, Cash Cows, Dogs, and Question Marks.

Stars are products that are highly profitable and have a strong competitive position in the market. These products should be invested in and given the resources to grow. Cash Cows are products that are highly profitable but have a weak competitive position in the market. These products should be managed to maximize profits, but not invested in. Dogs are products that are weakly profitable and have a weak competitive position in the market. These products should be discontinued or sold off. Question Marks are products that are weakly profitable but have a strong competitive position in the market. These products should be evaluated to see if they can be turned into Stars.


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What templates are related to Product Portfolio Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Product Portfolio Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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