ADL Matrix- Arthur D. Little

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Definition: ADL Matrix- Arthur D. Little

The ADL matrix by Arthur D. Little is a portfolio management matrix which helps managers discern their SBUs strategic position depending upon 2 dimensions-

  1. SBU’s life cycle and
  2. Competitive position

Each of these dimensions can be further split up into the following categories to better analyze a firm and accordingly determine the future strategic actions-

Life cycle stages can be

  1. Embryonic
  2. Growth
  3. Maturity
  4. Ageing

Competitive position can also be either of the following

1. Dominant

The position of a company falls into this category if it is a clear market leader or has a monopoly position. Exampl , Intel in microprocessors.

2. Strong

In this case, the company might not be a monopoly but definitely has a strong presence and loyal customers.

3. Favorable

Companies with favorable competitive position usually operate in fragmented markets and no single one controls all market share.

4. Tenable

Here each company caters to a niche segment defined by a product variety or segmented demographically.

5. Weak

In this scenario, the company financials are too weak to gain a strong hold in the market and is expected to die out within a short span of time.

Thus depending on where a particular firm lies on the ADL grid, a suitable set of strategies should be adopted by it to gain greater market share and move to higher stages of life cycle and competitive positions.


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