It is important to remember that competitive strategy in an organization is created in the separate business units of the organization. Most organizations have a number of business units, which are competing in different markets, where customers or clients have different needs and require different products or services. So to understand business-level strategy it is important to be able to identify the SBUs in an organization.
Definition : A strategic business unit is a part of an organization for which there is a distinct external market for goods or services that is different from another SBU.
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