The Business Challenge
The client, a leading professional services firm (PSF) headquartered in California, was facing predicaments in expanding their offerings. The strategies adopted by them to utilize business opportunities and profitability, while providing a robust portfolio that could withstand downturns in certain sectors, were failing miserably. This compelled the client to leverage SpendEdge’s expertise and strategize direct business resources while determining the way for reducing excess spend.
Devising portfolio strategies that can withstand economic downturns can be a tough task for companies. Get in touch with our experts and know how portfolio analysis can help your organization to formulate effective strategies and gain positive business outcomes.
To help the professional services firm, the experts at SpendEdge critically analyzed the company’s services and performed a portfolio analysis. They adopted a comprehensive two-step research methodology comprising of primary and secondary research coupled with scrupulous qualitative and quantitative data collection techniques.
During the course of the service portfolio analysis engagement, the professional services firm made prudent business decisions to re-profile their business and devise more accurate business strategies. They focused on improving service offerings that can help them rank in the top tier of the industry. The company also made a large-scale acquisition to increase their footprint outside of the United States, where they had better chances of long-term growth. This resulted in significant downsizing and allowed more investment with those clients and regions where the potential for sustained growth was higher.
Within a span of eight months, the service portfolio analysis helped the company to shift from the most challenging performance year to one of the best financial years. The businesses of the company that were turning financially unfeasible, started growing at twice the rate of the industry average. This doubled the company’s profit and improved their rankings by five positions internationally.
What is Portfolio Analysis?
A critical evaluation of the components involved in a mix of products or services with the purpose of making business decisions that can improve the overall return is referred to as portfolio analysis. Additionally, in terms of securities, a portfolio analysis refers to an investment portfolio that can help in better allocation of resources and an increase in profits. It highlights the trade-off between the returns on an investment and the risks associated with that investment. The information on returns is then used to perform strategic portfolio analysis for businesses.