Portfolio strategy encompasses the strategic choices that involve the mix of brands, lines, products, channels, and customers within a company. Effective portfolio strategy management means creating optimal combinations to maximize the benefits obtained both by the target audience and by the company itself.

When a company sets up its business, these choices naturally take shape in the creation of the offer, appearing clear and linear. In the every day, company managers find themselves constantly facing situations or requests that are tempting, promising economic returns in the short term, but whose overall impact is often not fully assessed.

Here are five essential questions to best evaluate and manage the expansion of your offer:

• Is the return in terms of margin sufficient to justify the increase in costs and management complexity?
• Is the request consistent with the company’s purpose and offer?
• If yes, under which brand and line should it be inserted?
• Do we currently have a relevant number of customers who might be interested in the new product/service?
• If not, will this new product / service allow us to intercept a new target relevant to the company?