Company Position/Industry Attractiveness Screen
Portfolio Evaluation
The Company Position/Industry Attractiveness Screen is a framework used to evaluate a company's portfolio of products or services. It categorizes products into three categories based on their industry attractiveness and company position. The framework helps businesses allocate resources, identify areas for investment, and determine which products to harvest or divest.
- Industry attractiveness is a key determinant of investment potential
- Company position is a key determinant of competitive advantage
- A company's portfolio should be managed to achieve a balance between cash generation and cash use
- Define the IndustryDefine the industry and identify the key factors that determine attractiveness. Determine the company's position in the industry.Pro tipUse industry reports and market research to gather dataWarningEnsure that the industry definition is accurate and relevant
- Plot the PortfolioPlot the company's portfolio of products or services on the Company Position/Industry Attractiveness Screen. Categorize each product into one of the three categories: invest, hold, or harvest.Pro tipUse a clear and concise format to visualize the portfolioWarningEnsure that the data is accurate and up-to-date
- Determine the Strategic MandateDetermine the strategic mandate for each product or service based on its position on the screen. Decide whether to invest, hold, or harvest each product.Pro tipConsider the company's overall strategy and resource allocationWarningEnsure that the strategic mandate is aligned with the company's goals and objectives
General Electric used the Company Position/Industry Attractiveness Screen to evaluate its own portfolio of products and services. The company was able to identify areas for investment and divestment, and allocate resources accordingly.
The Company Position/Industry Attractiveness Screen was developed by General Electric in the 1970s. It was designed to help businesses evaluate their portfolios and make strategic decisions about resource allocation.