Strategic Business Unit (SBU)-Value Matrix

The Strategic Business Unit (SBU)-Value Matrix is a 2x2 matrix used to assess the strategic value of a business unit. It is used to identify the business units that should be invested in, and those that should be divested.

At a very high level, the Strategic Business Unit (SBU)-Value Matrix is used in the context of business, finance, marketing.

Strategic Business Unit (SBU)-Value Matrix quadrant descriptions, including examples
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What is the Strategic Business Unit (SBU)-Value Matrix?

A visual explanation is shown in the image above. The Strategic Business Unit (SBU)-Value Matrix can be described as a matrix with the following quadrants:

  1. High Value, High Growth: Business units that have both high potential for growth and high current value. These are the units that should be invested in and given the most resources. (e.g. a new product line that has high potential for growth and is already showing signs of success)
  2. High Value, Low Growth: Business units that have high current value but low potential for growth. These are the units that should be maintained, but not given additional resources. (e.g. an established product line that is profitable but has limited potential for growth)
  3. Low Value, High Growth: Business units that have low current value but high potential for growth. These are the units that should be monitored closely, but not given additional resources. (e.g. a new product line that has high potential for growth but is not yet showing signs of success)
  4. Low Value, Low Growth: Business units that have both low potential for growth and low current value. These are the units that should be divested. (e.g. an established product line that is not profitable and has limited potential for growth)

What is the purpose of the Strategic Business Unit (SBU)-Value Matrix?

The Strategic Business Unit (SBU)-Value Matrix is a 2x2 matrix used to assess the strategic value of a business unit. It is used to identify the business units that should be invested in, and those that should be divested. The matrix is divided into four quadrants, each representing a different strategic value.

The top-left quadrant is the 'High Value, High Growth' quadrant. This quadrant represents business units that have both high potential for growth and high current value. These are the units that should be invested in and given the most resources. An example of a business unit in this quadrant is a new product line that has high potential for growth and is already showing signs of success.

The top-right quadrant is the 'High Value, Low Growth' quadrant. This quadrant represents business units that have high current value but low potential for growth. These are the units that should be maintained, but not given additional resources. An example of a business unit in this quadrant is an established product line that is profitable but has limited potential for growth.

The bottom-left quadrant is the 'Low Value, High Growth' quadrant. This quadrant represents business units that have low current value but high potential for growth. These are the units that should be monitored closely, but not given additional resources. An example of a business unit in this quadrant is a new product line that has high potential for growth but is not yet showing signs of success.

The bottom-right quadrant is the 'Low Value, Low Growth' quadrant. This quadrant represents business units that have both low potential for growth and low current value. These are the units that should be divested. An example of a business unit in this quadrant is an established product line that is not profitable and has limited potential for growth.


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What templates are related to Strategic Business Unit (SBU)-Value Matrix?

The following templates can also be categorized as business, finance, marketing and are therefore related to Strategic Business Unit (SBU)-Value Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.

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