What is a Business Unit Strategy?

By | November 5, 2013
This entry is part 5 of 31 in the series Defining words

A Business Unit Strategy is a Business Strategy for a single business unit.

Business units sometimes operate in a particular industry and serve a particular market.  Other times they are product-focused.

Business unit strategists must decide which products to market to which segments and how to expand the business within the constraints of the Corporate Strategy.  New products for existing customers or new customers for existing products?

This is usually the level at which strategists look at various competencies and decide which ones are “differentiating” and which ones should be outsourced, given boxes for their paper files, or otherwise neglected.

Business unit strategists also govern product managers or whoever is creating Product-Market Strategy.

Business Unit Strategy is of key importance to IT Strategy.  For example, when the business decides that a particular competency is “differentiating” it is an indication that they will need technology to be applied in that area.

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