Strategic Marketing Business Portfolio Management through Formation of Business Areas in it

Yavorska Kateryna Yu. ()
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Yavorska Kateryna Yu.: National Technical University of Ukraine "Kyiv Polytechnic Institute"

Business Inform, 2014, issue 1, 350_355

Abstract: The article states the business portfolio could be formed not only by strategic business units, but also types of activity that support them. Thus, there is a possibility of formation of a business area through creation of the second level of aggregation in the business portfolio. The article establishes that availability of business areas provides the following advantages to an enterprise: increases its resistance to the negative impact of external and internal market factors, forms input barriers against appearance of new and development of existing competitors, preserves and protects the obtained market positions by means of formation of stable and long-term competitive advantages, increases profitability of the available components in the business portfolio, etc. The article offers a model of formation of business areas, which envisages passage through three stages: detection of the market interconnections between the business portfolio components, formation of business areas on its basis, assessment of the portfolio equilibrium on the basis of the formed business areas and final selection of business areas, which would ensure the best indicators of equilibrium. The article offers a structural and logic scheme of strategic marketing management of the business portfolio, which is based on availability of business areas. Unlike the previous ones, the content of its stages envisages the business portfolio management starting from the second level of aggregation (from the level of business areas and not individual strategic business units and supporting types of activity). The offered scheme considers three situations of business portfolio management depending on the degree of its equilibrium. The article provides a method of selection of marketing strategies of development of business areas that depend on the degree of equilibrium of the portfolio and its resource potential.

Keywords: business portfolio; business area; strategic business unit; balanced business portfolio; strategic marketing management of the business portfolio (search for similar items in EconPapers)
Date: 2014
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