A portfolio strategy outlines how a company will use different brands and branding elements to drive profitable growth.
Portfolio strategy is about building a collection of brands or offerings with different strengths and limitations. Decisions that are optimal for one brand may not be optimal for another and building a successful portfolio strategy is about trade-offs and tough choices. A portfolio strategy ensures you make decisions within a broad framework and don't make decisions in isolation that cost money and may not enhance your business's overall success in the category.
A planned portfolio strategy creates guidelines for future creation, acquisition, building or divesting decisions, and provides focus around your future strategy.