Proposal for selecting and prioritizing a portfolio of new products in a textile company

Abstract

Product portfolio management is responsible for maintaining the competitive position of an organization, properly allocating resources for new product development, and assuring greater objectivity and effectiveness in the selection of new products. Companies in various industries have structured their portfolio management processes with these goals in mind when developing new products. In this context, this paper develops a proposal for selecting and prioritizing projects for new products for a manufacturer of textile products. After an initial assessment that identified opportunities for improvement in product portfolio management, the proposal was constructed based on criteria such as strategic importance, contribution margins, and sales volume forecasts. The proposal was then compared with historical data. It was found that significant changes were necessary in the prioritization of products to be developed due to factors such as the over-dimensioning of contribution margins and sales volumes. The proposal allows for a better structured process of the selection and prioritization of products to be developed while achieving a more rigorous selection process.