A balanced product portfolio is essential for any business aiming for long-term success. It involves having a mix of products at different stages of their life cycles—introduction, growth, maturity, and decline. This balance helps companies manage risks associated with market fluctuations and changing consumer preferences. For instance, a company with a diverse portfolio can rely on its mature products for steady revenue while investing in new innovations. Additionally, a balanced portfolio allows businesses to respond effectively to competition and market demands. By regularly reviewing and adjusting their product offerings, companies can ensure they remain relevant and competitive in their industry.