Learn in the textbookFrameworks for Analyzing the Business Environment
DefinitionPPM (Product Portfolio Management, プロダクトポートフォリオマネジメント) is a method that places a company's businesses or products into four quadrants on two axes, market growth rate (市場成長率) and market share (市場占有率), to plan how management resources are allocated.
ExplanationThe quadrant with both high growth and high share is the star (花形), high growth with low share is the question mark (問題児), low growth with high share is the cash cow (金のなる木), and low on both is the dog (負け犬). Once each business's position is clear, it becomes easier to decide where to push harder and where to pull out.
AnalogyIt is like a farmer lining up the crops and planning to spend the income from easy, steady sellers on seedlings and fertilizer for crops that look set to grow.
Memory hookRead market growth rate as "how promising the market is" and market share as "how strong the company is in that market", and the two axes become easy to grasp.