Advantages and disadvantages of product portfolio

Question 1

1. an advantage of product portfolio

Answer 1

Businesses can spread risk over different markets

Question 2

2. an advantage of product portfolio

Answer 2

A business can meet the needs of different market segments and appeal to more customers.

Question 3

3. an advantage of product portfolio

Answer 3

Newer products can replace those at the end of their life cycle.

Question 4

4. an advantage of product portfolio

Answer 4

A range of products increases the awareness of the brand as a whole.

Question 5

5. an advantage of product portfolio

Answer 5

A business will find it easier to launch new products with a large existing portfolio.

Question 6

6. an advantage of product portfolio

Answer 6

Cash cows can fund other, riskier, ventures such as the marketing of stars.

Question 7

7. an advantage of product portfolio

Answer 7

Starts allow a business to be market leader in one area which will improve the brand image overall.

Question 8

8. an advantage of product portfolio

Answer 8

Question mark products give businesses an opportunity to invest and grow.

Question 9

9. an advantage of product portfolio

Answer 9

Dogs can be divested to reduce losses.

Question 10

1. disadvantages of product portfolio

Answer 10

There are high costs involved in researching ad developing so many products.

Question 11

2. disadvantages of product portfolio

Answer 11

High marketing costs are incurred to promote so many products.

Question 12

3. disadvantages of product portfolio

Answer 12

Bad publicity surrounding one product can affect the whole portfolio.

Question 13

4. disadvantages of product portfolio

Answer 13

Resources assigned to new products may affect the performance of exiting products.

Question 14

5. disadvantages of product portfolio

Answer 14

Dogs can drain a business of profits unless they are divested.