Importance of width, length, depth and correlation of product portfolio
The width, length, depth and correlation (density) of enterprise product portfolio are different, which constitute different product portfolios. Enterprises will be restricted by enterprise resources, market demand and market competition when they choose to determine the width, length, depth and correlation (density) of product portfolio. The width, length, depth and density of enterprise product portfolio mainly depend on the demand of enterprise target market.
The width, length, depth and relevance of product portfolio are of great significance in marketing strategy.
First of all, enterprises can give full play to their own advantages, make full use of their own resources and technologies, especially large enterprises, and improve their operating efficiency by increasing the width of product portfolio (that is, increasing product categories, expanding business scope, and even operating across industries and implementing diversified operations); In addition, diversification of investment can also reduce risks.
Secondly, enterprises can increase the length and depth of product portfolio (that is, increase product projects, increase product design and specifications, etc.). ), can cater to the different needs and hobbies of consumers and attract more customers.
Finally, an enterprise can enhance its reputation in a certain region and industry by increasing the relevance of its product portfolio (even if all product categories are closely related in terms of end use, production conditions and distribution channels).