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The portfolio management as support the development of new products in the furniture industry - part 2

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Olkowicz M.

nr 3

Portfolio management has received a stable and central position both in project management research, product development management research, and companies' management practices during the past decade. Moreover, it has become a central way for companies to manage their product development efficiently and effectively. Developing new products rapidly to enter new markets and capture market share may lead to designing a diverse range of products. The viewpoint presented in this article and its first part, may enable initial evaluation of product portfolios and their management over time conducted for the selected furniture factories. The research was carried on in the second half of 2011 in three large furniture (case goods) companies. The main results indicate that old products constitute on average about 30 – 55% of monthly sales. Also, there are two options for furniture manufactures: either to direct toward implementation of new furniture collections assuming their life cycles to be as long as possible, or launching new products more frequently but with the awareness of their shorter life cycles.