Towards commercial and environmental excellence: A green portfolio matrix

Abstract

Abstract This article examines the strategic framework and options available for product strategy towards commercial and environmental excellence. It defines the environmental dimension as a ‘moving target’, explores a conceptual framework to integrate commercial and environmental dimensions and elaborates a ‘green portfolio matrix’. The proposed matrix is also empirically investigated as to its practical validity by using a set of secondary data including twelve product cases. Using the matrix, a company can diagnose its existing product mix from an environmental point of view, and furthermore can establish future ‘targets’ for an environmentally‐friendly product portfolio. In addition, the matrix can be used as a framework for comparative analyses between strategic business units or for longitudinal assessment of a specific business entity.