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A Strategic Business Unit (SBU) is a part of an organization that operates independently w responsibility for strategic planning, resource management, and achievement of specific objectives under the umbrella of the parent corporation. This research aims to analyze what a Strategic Business Unit is, the factors of SBU selection, and how the steps of determining the SBU structure. The methodology used is qualitative research which has a Literature Review approach which is research that critically reviews academic-oriented literature. The results showed that successful business unit (SBU) strategies include product differentiation, service innovation, and strengthening customer relationships. In addition, the application of information technology and data analysis is also proven to improve operational efficiency and decision-making. This study found that companies that are able to adapt to market changes and consumer needs have a higher competitive advantage. Thus, this study provides insights for companies in formulating and implementing effective business unit strategies to achieve long-term goals and improve overall performance.