Strategic Business Unit (SBU) Matrix

The Strategic Business Unit (SBU) Matrix is a 2x2 matrix used to evaluate and prioritize business units or products. It is based on the market growth rate and relative market share of each business unit or product.

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

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

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

  1. Stars: High market growth and high market share (e.g. Apple iPhones)
  2. Cash Cows: Low market growth and high market share (e.g. Microsoft Office)
  3. Question Marks: High market growth and low market share (e.g. Tesla cars)
  4. Dogs: Low market growth and low market share (e.g. Nokia phones)

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

The Strategic Business Unit (SBU) Matrix is a 2x2 matrix used to evaluate and prioritize business units or products. It is based on the market growth rate and relative market share of each business unit or product. The matrix divides the business units or products into four categories: Stars, Cash Cows, Question Marks, and Dogs.

Stars are business units or products with high market growth and high market share. They require significant investment to maintain their position in the market. Cash Cows are business units or products with low market growth and high market share. They generate a steady stream of cash and require little investment. Question Marks are business units or products with high market growth and low market share. They require significant investment to increase their market share. Dogs are business units or products with low market growth and low market share. They require little investment and may be divested.

The SBU Matrix is a useful tool for evaluating and prioritizing business units or products. It can help managers identify which business units or products should be invested in, divested, or maintained.


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

The following templates can also be categorized as business, marketing, finance and are therefore related to Strategic Business Unit (SBU) Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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