Product Portfolio Management
Top-performing chemical companies persistently manage their portfolios by continually identifying and capitalizing on new business opportunities for value creation and methodically divesting underperforming businesses. No matter which segment a chemical company falls into, the pathway to successful portfolio transformation often involves considering how the basis of competition is changing.
Sirius Consultancy International assists its clients in evaluating their product portfolio based on market and applications needs in the biobased chemicals, bioplastics and industrial biotechnology space.
Firstly, product portfolio analysis is used to assist in planning product development and strategy by analyzing an existing portfolio to decide which products should receive more or less investment. Secondly, it is used to add new products to the portfolio and decide which products and businesses should be eliminated.
Product Lifecycle Management
Product lifecycle management refers to the handling of product as it moves through the typical stages of its product life: development and introduction, growth, maturity/stability, and decline. This handling involves both the development and manufacturing of the product and the marketing of it. The concept of product life cycle helps inform business decision-making, from pricing and promotion to expansion or cost-cutting.
Chemical companies can prepare for the new opportunities and build lasting business strength by tracking the larger trends shaping consumer preferences and end-markets to extract more value from current resources and assets. For example, with governments worldwide restricting single-use plastics, and public gaze shifting to sustainability and carbon footprint, chemical companies are expected to develop new sustainable products and business models.
1. Top-performing chemical companies are making critical portfolio choices that create value.
2. Long-term competitive advantage in the chemical industry is built less by short-term supply-demand thinking and more through ongoing macroeconomic thinking of trends and implications.
3. Product lifecycle management handles a firm’s approach to the various phases of a product’s development through to its ultimate decline. It involves all stages, including the development and manufacturing of a product, to its marketing and customer segmentation.
4. The main benefits of product lifecycle management include shortening product development times, knowing when to ramp up or reduce manufacturing efforts, and how to focus marketing efforts.