Beyond One Hit Wonders

Mastering Product Portfolio Strategy

Last week, we broke down the Build vs Buy dilemma, using ServiceNow’s $2.85B acquisition of Moveworks as a masterclass in strategic decision-making. But just as we wrapped up, another major deal made headlines—Google's $23B acquisition of Wiz.

Why did Google go all in? Simple: Portfolio strategy. Wiz strengthens Google Cloud’s security offerings, filling a critical gap while reinforcing its position against AWS and Microsoft. Instead of piecing together fragmented solutions, Google is shaping a cohesive security platform—a move that aligns with how leading companies think about their product portfolios.

Because here’s the thing—once you’ve built or bought a product, the real challenge begins: How do you manage multiple products effectively without drowning in complexity? If Build vs. Buy is a one-time decision, Product Portfolio Strategy is an ongoing discipline—one that separates companies that scale successfully from those that collapse under their own weight. And at the heart of it? Platform thinking. Let’s dive in. 🚀

Why Product Portfolio Strategy is a Nightmare (If you get it Wrong) 😵‍💫

Ever worked at a company where every product feels like a separate startup? Different teams, different tech stacks, different roadmaps—barely any synergy? Welcome to the world of portfolio mismanagement.

Scaling isn’t just about launching more products—it’s about ensuring they work together to drive exponential value. Companies that manage this well (think Apple, Microsoft, and AWS) create an ecosystem effect that turns individual products into a moat. Those that don’t? They burn resources and confuse customers.

Source

Here’s how to avoid the chaos.

The Three Pillars of a Strong Product Portfolio Strategy

1. Strategic Focus: Every Product Must Have a Clear Role 🎯

Not every product needs to be a blockbuster, but every product must have a job to do within the portfolio. The best way to think about this is with a Portfolio Map:

📌 Core Products: These drive the majority of revenue and market differentiation (e.g., iPhone for Apple, Windows for Microsoft).
📌 Growth Bets: Emerging products with high potential but uncertain ROI (e.g., Apple Watch before it took off).
📌 Support Products: Features or tools that enhance the core experience (e.g., AirPods complementing iPhones).
📌 Sunset Candidates: Products that no longer justify investment (RIP Skype).

Pro Tip: If a product doesn’t fit clearly into one of these categories, you probably don’t need it. Cut the dead weight.

2. Platform Thinking: Don’t Just Build Products—Build Ecosystems 🌐

Great product companies don’t launch isolated products—they build platforms that make each product more valuable over time.

Take Microsoft: Office 365, Teams, Azure, and LinkedIn aren’t just standalone products—they interconnect in a way that makes leaving Microsoft’s ecosystem painful.

📌 Internal Efficiency: Shared components (authentication, APIs, AI models) reduce duplication.
📌 Customer Stickiness: Products that integrate seamlessly increase switching costs.
📌 Developer Leverage: Platforms attract third-party developers, creating a network effect.

Before adding a new product to your portfolio, ask: Can this plug into our existing ecosystem and make everything stronger?

3. Execution Discipline: Avoid the Frankenstein Effect 🏗️

It’s easy to add products—it’s hard to manage them without turning into Frankenstein’s monster.

Avoid these classic traps:

🪤 Too Many Priorities: If everything is a priority, nothing is. Assign clear resources per product line.
🪤 Misaligned Roadmaps: Your products shouldn’t be competing for internal resources. Align your roadmaps.
🪤 Tech Debt Hell: Every new product should ideally share a common tech foundation. Otherwise, maintenance costs will kill you.

Framework: How to Evaluate Your Portfolio Like a Pro 📊

Use this Portfolio Health Check to assess your product lines. Rate each product from 0-10 (higher = stronger case for investment).

1️⃣ Strategic Fit: How well does this product align with your company’s mission? 🎯
2️⃣ Revenue Impact: How much revenue does this contribute—or have the potential to? 💰
3️⃣ Synergy Score: Does this make other products stronger, or is it an orphan? 🤝
4️⃣ Customer Demand: Are customers actually asking for this? 📣
5️⃣ Competitive Positioning: Does this give you a strategic edge? 🔥
6️⃣ Scalability: Can this product grow without exponential cost? 📈
7️⃣ Technical Overhead: Is this easy to maintain, or is it a legacy headache? 🛠️

If a product scores low across the board... it might be time to sunset it.

How Companies Apply This Framework in the Real World 🌎

While companies may not publicly share a score-based portfolio evaluation, we see these principles in action all the time. One standout example? Salesforce.

🔹 Sunsetting Products: Cutting What Doesn’t Fit

Salesforce shut down Quip in 2023, despite its initial promise as a collaboration tool. Why? It scored low on strategic fit and synergy—customer demand had shifted toward Slack and AI-powered tools, and Quip wasn’t tightly integrated into Salesforce’s core enterprise stack. Instead of keeping a low-impact product alive, they reallocated resources to higher-value areas.

🔹 Doubling Down on AI & Data: Investing Where It Matters

Rather than expanding Quip, Salesforce focused on Einstein AI and Data Cloud—both scoring high in strategic fit, revenue impact, and competitive positioning. These investments not only strengthened their platform but also reinforced their leadership in AI-driven enterprise solutions.

🔹 Acquiring for Synergy: The $27.7B Slack Bet

When Salesforce acquired Slack for $27.7B in 2021, the decision was clear—Slack scored high on synergy, customer demand, and revenue potential. It seamlessly fit into Salesforce’s portfolio, unlocking massive cross-selling opportunities and strengthening their enterprise automation strategy.

This kind of portfolio thinking—deciding when to sunset, invest, or acquire—is what separates companies that scale successfully from those that struggle under product sprawl.

Final Thoughts: From Products to Platforms to Power 🔮

The best product companies don’t just build great products—they create self-sustaining ecosystems. Think about your product portfolio like a chessboard: Every piece must serve a purpose, work together, and reinforce your competitive advantage.

So, next time your team proposes a new product, don’t just ask “Can we build it?”—ask “Does this make our entire portfolio stronger?” That’s the real game-changer.

💡 What’s the biggest portfolio challenge you’ve faced? Drop a comment below—we’d love to hear your insights! 👇

This Week's Featured Job Openings

1. Associate Product Manager

   1. Company: Samsara

   2. Location: San Francisco, CA

2. Product Manager

   1. Company: Cloudflare

   2. Location: Multiple locations, USA

3. Senior Product Manager

   1. Company: ServiceNow

   2. Location: Orlando, FL

4. Principal Product Manager

   1. Company: Atlassian

   2. Location: Multiple locations, USA

5. Director of Product Management

   1. Company: Adobe

   2. Location: Multiple locations, USA

Stay tuned each week as we bring you new opportunities. Happy job hunting.