Strategic Business Unit (SBU)-Value Matrix

The Strategic Business Unit (SBU)-Value Matrix is a strategic tool used to evaluate and prioritize different business units or products within a company. It helps in identifying which units are worth investing in, which ones need improvement, and which should be divested. The matrix is divided into four quadrants based on two dimensions: market attractiveness and business unit strength.

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

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 Strength: These units are top performers in attractive markets. Example: A leading product in a rapidly growing industry.
  2. High Value / Low Strength: These units are in attractive markets but need improvement. Example: A promising product with low market share.
  3. Low Value / High Strength: These units perform well but in less attractive markets. Example: A dominant product in a declining industry.
  4. Low Value / Low Strength: These units underperform in unattractive markets. Example: A struggling product in a shrinking market.

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

The Strategic Business Unit (SBU)-Value Matrix is a valuable tool for companies looking to optimize their portfolio of business units or products. By plotting each unit on a 2x2 matrix, businesses can visually assess the relative value and strategic importance of each unit. The matrix is divided into four quadrants:

  • High Value / High Strength: These units are the stars of the company, showing strong performance in attractive markets. They are often prioritized for investment and growth.
  • High Value / Low Strength: These units operate in attractive markets but are currently underperforming. They may require strategic initiatives to improve their competitive position.
  • Low Value / High Strength: These units are strong performers in less attractive markets. Companies may consider maintaining or selectively investing in these units.
  • Low Value / Low Strength: These units are underperforming in unattractive markets. They are often candidates for divestiture or discontinuation.

By using the SBU-Value Matrix, companies can make informed decisions about resource allocation, strategic focus, and long-term planning. For example, a company might decide to invest more in a high-value, high-strength unit to capitalize on its market position, while divesting a low-value, low-strength unit to free up resources.


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

The following templates can also be categorized as business, strategy, management and are therefore related to Strategic Business Unit (SBU)-Value Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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