Portugal is sure a good team especially with CR7 they may do something this year, but their weak point is that they don't take their matchs very seriously they're known for that that's why they fail big.
In all honesty, the reason Portugal doesnt perform according to expectations is because there is simply no team chemistry whatsoever. How many good players did we have in the past 10-20 years, with 0 profit for the national team, and by profit I mean silverware?
We've lots of titles from the youth teams, but most of those young players never make it to a top team, whether portuguese or foreign, let alone reach the national team.
Year after year we (portuguese) watch our most promissing players disappearing because our clubs prefer to sign foreigners, never giving a chance to youth prospects.
The one time we were ever close to winning a tournament was in 2004, at home, where we lost twice to Greece. Most of the success in 2004-2006 was because our midfield was from FC Porto, they had routines of playing together for years.
In recent years this doesn't happen, we have good players but the playing style never looks fluid regardless of how many pratice games we play and how much money we spend on it (which is ridiculous, by the way).
Every time I watch a game, it feels as it's their first time playing together...