Which of the following is a potential outcome of effective portfolio analysis?

Effective portfolio analysis is a strategic method used by companies to assess their various business units or product lines. One key outcome of this analysis is the identification of new market opportunities. This analysis allows organizations to evaluate their strengths and weaknesses, market potential, competitive dynamics, and customer needs across different product offerings. By gaining insights into the performance of different segments, companies can spot gaps in the market or emerging trends, leading to opportunities for new products or services.

By identifying these opportunities, a company can make informed decisions about resource allocation, product development, and market entry strategies. This ultimately supports growth and enhances competitive advantage in the marketplace. In addition, effective portfolio analysis often leads to strategic initiatives that focus on high-potential areas, promoting innovation and responsiveness to changing market demands.

The other options do not align with the positive outcomes associated with effective portfolio analysis. Lower customer retention, for instance, would typically be a negative consequence suggesting poor strategy implementation or product management. Similarly, an increase in operational complexity and a decrease in product diversity would generally be considered unfavorable outcomes, indicating inefficiencies or a lack of focus within the company's offerings.