The Business Portfolio Map Explained

Introduction

This tutorial provides a clear and concise guide to understanding and utilizing the Business Portfolio Map as explained in the Strategyzer video. The Business Portfolio Map is a strategic tool that helps organizations assess and manage their business models effectively. By following this guide, you will learn how to create and analyze your own Business Portfolio Map, facilitating better decision-making and resource allocation.

Step 1: Understand the Purpose of the Business Portfolio Map

• The Business Portfolio Map helps visualize and evaluate the various business models within an organization.
• It assists in identifying which models are performing well and which may need adjustments or discontinuation.
• Key benefits include improved strategic alignment and focused resource allocation to high-potential areas.

Step 2: Download the Business Portfolio Map

• Access the Business Portfolio Map from Strategyzer's website: Download Here.
• Ensure you have the latest version to utilize all features effectively.

Step 3: Identify Your Business Models

• List all existing business models within your organization.
• Include details such as:
  • Target customers
  • Value propositions
  • Revenue streams
  • Cost structures
• This comprehensive list will serve as the foundation for your portfolio map.

Step 4: Populate the Business Portfolio Map

• Use the downloaded map template to input your identified business models.
• Position each model according to performance metrics:
  • Use axes such as "Market Growth" and "Market Share" to categorize your models.
• Color-code or use symbols to differentiate between models based on performance levels (e.g., high, medium, low).

Step 5: Analyze Your Portfolio

• Examine the placement of each business model on the map.
• Identify:
  • High-potential models that require investment.
  • Models that are underperforming and may need strategic shifts.
  • Opportunities for synergy between different models.
• Consider questions like:
  • Which models can be expanded?
  • Are there models that should be phased out?

Step 6: Develop Action Plans

• For each model, create actionable strategies based on your analysis:
  • Investment Strategies: Increase resources for high-potential models.
  • Revitalization Plans: Revamp underperforming models with new strategies or marketing.
  • Exit Strategies: Plan the phase-out of models that no longer align with business goals.

Step 7: Review and Iterate

• Regularly revisit your Business Portfolio Map to adjust as necessary:
  • Monitor market trends and business performance.
  • Update your map with new business models or changes to existing ones.
• Encourage team collaboration to ensure diverse perspectives are considered during analysis.

Conclusion

The Business Portfolio Map is a powerful tool for visualizing your organization’s business models and making informed strategic decisions. By following the steps outlined in this guide, you can create an effective portfolio that highlights opportunities and challenges within your business landscape. Regularly updating and reviewing your map will ensure it remains a vital part of your strategic planning process. For further reading, consider checking out "The Invincible Company" for deeper insights into business strategy.