R Company produces a range of hair and beauty products. T, the Finance Director, and P, the Marketing Director, are reviewing the outcome of some product portfolio analysis which has recently been undertaken. They are keen to gain a better understanding of how the company's products are performing, specifically in terms of market share and market growth.

The analysis has revealed the following:

• Product A had a high market share but is in a market where there is low growth
• Product B has a low market share but is in a high growth industry
• Product C is a market leader with high market share in a high market growth industry
• Product D has a low market share and is in a low growth industry

Describe what the analysis shows about R Company's current product portfolio and the implications for the future development of its products.

To help understand the position of the four products referenced in the scenario in terms of R Company's product portfolio, the BCG matrix could be used.  

Product A can be classified as a 'cash cow' in that it has a high market share, but low market growth. This product will be a generator of cash which can be used to invest in other products in their developmental part. A defensive strategy could be adopted in order to protect the position of the product to sustain its market share, since low growth suggests a lack of opportunity for future growth.

Product B is a 'question mark' (alternatively called as a problem child) product with a low market share but operating in a high growth industry. This makes a dilemma for R Company, in that this product will require important investment to nurture it, in the hope that it will eventually become a 'star' in the future. In making the decision on product B, R Company will requirement to be confident that with any further investment it will be able to gain market share.