The Value of a Broader Product Portfolio

Nowadays, broadening your portfolio can increase both your chances of a big win and the benefit your other products can get from a hit's popularity. With rapid technological change posing ever more intense competitive challenges, companies are often advised to scrutinize their portfolios and eliminate unprofitable products. Every product, the reasoning goes, must stand on its own bottom line. That, however, may be exactly the wrong mantra for these times. It's tempting for companies to try to meet the twin challenges of getting noticed and getting paid by shedding product lines, but successful firms have shown that the best approach is often the opposite one: to expand and extend the product portfolio.