Specifies the present and/or prospective scope of a strategic business unit's activities in terms of the boundaries of the arena in which the business elects to compete. The definition also serves to direct attention to the true function of the business-that is, the way that the business meets the needs of its target customers. A complete definition requires choices about the business position a long four dimensions: (1) customer functions-addressing the benefits being provided; (2) customer segments-specifying the customer groups seeking similar benefits and sharing characteristics that are strategically relevant; (3) technology--specifying the alternative ways in which a particular function can be performed; and (4) vertical business system--specifying where the business chooses to participate in the sequence of stages in the vertical business system (or value-added system).