The Product Portfolio Strategy Research Of B Company About Furniture

Under the background of economic structure adjustment,products appear serious homogenization phenomenon,the furniture market competition is fierce,and the enterprise management is increasingly difficult.The product is the basis of all business activities of an enterprise,and the right product portfolio strategy can provide a strong guarantee for the enterprise operation,transformation and development^[1].How a furniture enterprise formulates scientific and reasonable product combination strategy according to internal and external environment is related to the enterprise’s competitiveness,profitability and enterprise development.This article selects the Chinese glass metal furniture manufacturing base of leading enterprises-B company as the study case.First,it describes the status quo of small furniture products of B furniture company.This paper introduces the general situation of B company from four aspects of company introduction,strategic objectives,products and organizational structure,and introduces the current operating situation of company B’s products,including the overall operating situation of B company,the operating situation of product line and the operating situation of sub-products.Secondly,this paper analyzes the current situation of B company’s product portfolio.Using PEST analysis and Michael Porter’s Five Forces Model to have an analysis about external macro environment and competitive environment of the company,and has made the analysis of the company’s internal environment.Based on relevant theories about the product portfolio strategy,using Boston matrix analysis method,after in-depth analysis solid wood hanger production line,metal hangers production lines,the shelf production line and the color spray pier glass production line of the company from product portfolio width,length and portfolio depth,and found that shelf production and color pier glass line products are thin dog products,and it was lack of star products with high market share and high market growth rate,and no problem products with low market share and high market growth rate,that leads to a reduction in product continuity.To the company business data analysis and found that the company product portfolio is poor ability to cope with the market competition,do not pay enough attention to upgrading and product portfolio structure unreasonable phenomena,combined with the actual business situation,it is concluded that the portfolio problems for product not timely update,product development and market demand does not match,can not get effective feedback market information and high operating costs.After analyzing the operation data,it is found that the product portfolio of the company has poor ability to cope with market competition,insufficient upgrading and unreasonable product portfolio structure.Based on the actual operation situation of the company,the reasons for the problems in the product portfolio are analyzed.In the end,combined with the external macro environment,competitive environment,internal environment analysis of the company and the company’s main strategic objectives,the consumption preference of market consumers for small pieces of furniture was integrated,it proposed product portfolio adjustment strategy from expanding product portfolio width,adjusting product portfolio length,optimizing product portfolio depth and providing differentiated products.That is,through the development of the metal dining table and chair production line,the metal coffee table production line and the steel and wood combined with the hanger production line to expand the product portfolio width,adjust the product portfolio length by developing mid-and low-end products that are more suitable for the market,optimizing the depth of the portfolio by reducing product models with low turnover and gross margin,and by reducing selective retention of image models and similar models,and providing differentiated products by providing products that meet the specific needs of customers according to the characteristics of customers’needs in different markets.Besides,it proposed the safeguards to implement the above product mix strategy from control management cost,improve product marketing ability,pay attention to the combination of product development and market demand,pay attention to the talent strategy and establish a stable and high-quality supply chain system.Through the analysis of the product portfolio strategy of B furniture company,it strives to provide some reference for the operation of other traditional furniture enterprises.