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SBU (Strategic Business Unit): a subsidiary, division, or unit of an organization that markets a set
of related offerings to a clearly defined target market.
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Each SBU has a functional level. Departments are things like marketing and finance which are
specialized functions.
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SBUs
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Question Marks
 Low shares/High growth. Require large injections of cash to maintain their
market share, much less increase it.
Stars
 High shares/High growth. Need extra cash to finance their own rapid future
growth. When their growth slows, they likely become cash cows.
Cash Cows
 High shares/Slow growth. Generate large amounts of cash, far more than they
can use. Have dominant shares of slow-growth markets and provide cash to
cover the organization's overhead and invest in other SBUs.
Dogs
 Low shares/Slow growth. Generate enough cash to sustain themselves, they
usually are not real winners of the organization. Dropping SBUs that are dogs is
required sometimes because they consume more cash than they generate
especially when they have competitive or strategic alliances with other SBUs.
Good marketing strategy is a mix of what customers value and what your good at
SWOT
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Strength
Weakness
Opportunities
Threats
The 5 C’s
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Customers
o Self-actualization
o Esteem
o Love/Belonging
o Safety
o Physiological
Company – SW of the SWOT Analysis
o What does this company do?
o How does it make money?
o What’s our strategy for competing?
Collaborators/Complementers
o Key Collaborators
 Retail Partners
 Suppliers
o Complementers
 Enjoy success when you are successful
Context
o Competitive, Regulatory, Economic, Social, Technological (CREST)
Competitors
o Are there companies that provide alternative solutions to my customers needs?
o How seriously should I take these competitors?
Attractiveness of a Market/Industry? - Porter’s 5 Forces
• Competitors
• Potential Entrants
• Substitutes
• Buyer Strength
• Supplier Strength
• Which of these factors Increases the
attractiveness of an industry? (e.g., fewer
competitors = more attractive)
• There’s no “Utopian Industry.” Which tradeoffs
are you willing to accept?