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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-
SBU’s life cycle and
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
Competitive position can also be either of the following
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.
In this case, the company might not be a monopoly but definitely has a strong presence and loyal customers.
Companies with favorable competitive position usually operate in fragmented markets and no single one controls all market share.
Here each company caters to a niche segment defined by a product variety or segmented demographically.
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.