Portfolio analysis is a strategic planning tool in which management evaluates the products and businesses that make up a company. The goal is to allocate resources among the various strategic business units (SBUs) in the most efficient way.
The main activity in portfolio analysis is to identify SBUs and analyze them according to the attractiveness of the market (growth) and the strength of the company’s position in that market (market share). The BCG matrix (Growth-share matrix) is the most famous tool for this analysis.
