THE PRODUCT PORTFOLIO: REVISITED ASSESSING COMPETITIVE POSITION IN EDUCATIONAL SERVICES SECTOR
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Date
2011
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Journal ISSN
Volume Title
Publisher
Journal Review of Management Innovation and Creativity
Abstract
The product portfolio concept, firstly introduced by Bruce D. Henderson (1970), the founder of Boston Consulting Group, has been widely known as a milestone in Business Strategy literature. This analytical tool was so appealing and has been attracting a wide discussion since almost 40 years ago for its simplicity in assessing competitive position of company products and formulating strategic programs for future growth and development. Surprisingly, despite of its popularity, there were only a few reports on its application in practice. A widespread confusion and misunderstanding on how to put this analytical tool at work was seemingly the main root hampering any implementation attempt. Literature stuck only at introductory level of the concept, losing words of how to describe further the details for application. This report shares the experience of Widyatama University in using the said Product Portfolio for assessing its competitive posture and shows the advantage of this simple powerful technique. Market share and growth are among industry factors linked directly to profitability, a basic structural model, long time studied and revealed by the discipline of industrial economics, triggering many empirical studies. While quality of educational services remain undoubtedly an ultimate competitive advantage, the recent pressure and growing opinion treating higher education more as private services, places this sector under market competition law and market share becomes a determinant factor affecting sustainability of any higher education institution
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Keywords
Product Portfolio, Market Share, Growth Vector, Product Life Cycle, Higher Education