![]() Those are the conventional names of four different combinations of future market growth and relative market share, depending on which of the two variables is high or low (iEduNote). ![]() Through the analysis, the SBU can position itself in one of the four quadrants the chart is additionally divided into, specifically, Stars, Cash Cows, Question Marks, or Dogs. ![]() The latter is computed as a proportion of the SBU’s market share to that of its closest competitor. The process of analysis involves placing the SBU on a two-dimensional chart, whose Y-axis represents the future market growth, and X-axis – the relative market share of the SBU. Notably, it “helps in analyzing the position of a strategic business unit and the potential it has to offer” (Morgan, 2018). The BCG matrix is a widespread business analytical tool designed by the Boston Consulting Group. Therefore, each model of Tesla electric car, for instance, Model 3, may be regarded as an SBU, as its production is apparently autonomous from that of any other model. ![]() A division, a product line, or, in some cases, even a particular product or brand can be a separate strategic business unit (iEduNote). Learn More SBU in the BCG Matrix Identifying an SBUĪn SBU, which stands for a Strategic Business Unit, is a separate unit of a company, whose activity can be planned independently from the company’s general performance.
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