 | This article relies largely or entirely on a single source. (December 2019) |
Line of business (LOB) is a general term which refers to a product or a set of related products that serve a particular customer transaction or business need. In some industry sectors, like insurance, "line of business" also has a regulatory and accounting definition to meet a statutory set of insurance policies. It may or may not be a strategically relevant business unit.
"Line of business" often refers to an internal corporate business unit, whereas the term "industry" refers to an external view that includes all competitors competing in a similar market. A line of business will often examine its position within an industry using a Porter five forces analysis (or other industry-analysis method) and other relevant industry information.