Strategic portfolio planning in industries with long R&D cycles and interrelated product offerings: A practical approach to optimisation

Portfolio planning is a major determinant of the long-run success of companies. A fact-based approach to strategy making which facilitates the identification of a near-optimal product portfolio is therefore a valuable support for managers. Taking the automotive industry as an example, this contribution develops a tool geared to accompanying the entire portfolio strategy process, from cross-functional data collection to comprehensive analyses of financial and other industry-specific performance indicators. Moreover, the tool can be profitably utilised in top management strategy meetings, allowing a high ad-hoc adaptability of analyses and strategy alternatives while remaining easy to use.