Portfolio analysis begins with assignment to a quadrant before a sourcing strategy is formulated.

Question

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Portfolio analysis is the process of evaluating a company's product or service portfolio to determine the appropriate allocation of resources. One of the first steps in portfolio analysis is categorizing each product or service into a quadrant based on its revenue or profitability and its strategic fit. This quadrant assignment helps the company determine which products or services to invest in, which to divest, and which to maintain. Once the portfolio has been analyzed and products or services have been assigned to a quadrant, a sourcing strategy can be formulated.

Portfolio Analysis Begins with Assignment to a Quadrant Before a Sourcing