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There needs to be an equilibrium of the different types in your product portfolio. Never have any dogs, but try and keep the same amount of the other 3 types. This means that funds can be evenly distributed between the 3, money generated from cash cows needs to be spent turning problem children into stars, which will eventually become cash cows, and the cycle continues. Some problem children will become dogs, and money from cash cows may also have to be spent compensating for these failures.
The Boston Matrix is commonly used to try and help plan the future of a company as well as simply categorising products...
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