Difference between revisions of "ADL Matrix"
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| − | The ADL matrix by Arthur D. Little is a portfolio management matrix which helps managers discern their SBUs strategic position depending upon 2 dimensions- | + | 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 | *SBU’s life cycle and | ||
*Competitive position | *Competitive position | ||
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Competitive position can also be either of the following | Competitive position can also be either of the following | ||
| − | *Dominant: The position of a company falls into this category if it is a clear market leader or has a monopoly position. Example , Intel in microprocessors. | + | *Dominant: The position of a company falls into this category if it is a clear [[market]] leader or has a monopoly position. Example , Intel in microprocessors. |
*Strong: In this case, the company might not be a monopoly but definitely has a strong presence and loyal customers. | *Strong: In this case, the company might not be a monopoly but definitely has a strong presence and loyal customers. | ||
*Favorable: Companies with favorable competitive position usually operate in fragmented markets and no single one controls all market share. | *Favorable: Companies with favorable competitive position usually operate in fragmented markets and no single one controls all market share. | ||
| − | *Tenable: Here each company caters to a niche segment defined by a product variety or segmented demographically. | + | *Tenable: Here each company caters to a niche segment defined by a [[product]] variety or segmented demographically. |
*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.<ref>Definition: ADL Matrix [http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/4113-adl-matrix-arthur-d-little.html Arthur D. Little]</ref> | *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.<ref>Definition: ADL Matrix [http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/4113-adl-matrix-arthur-d-little.html Arthur D. Little]</ref> | ||
Revision as of 13:25, 6 February 2021
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
- 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:
- Embryonic
- Growth
- Maturity
- Ageing
Competitive position can also be either of the following
- Dominant: The position of a company falls into this category if it is a clear market leader or has a monopoly position. Example , Intel in microprocessors.
- Strong: In this case, the company might not be a monopoly but definitely has a strong presence and loyal customers.
- Favorable: Companies with favorable competitive position usually operate in fragmented markets and no single one controls all market share.
- Tenable: Here each company caters to a niche segment defined by a product variety or segmented demographically.
- 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.[1]
source: StrategyHub
References
- ↑ Definition: ADL Matrix Arthur D. Little
See Also
IT Strategic Planning
e-Business Strategic Planning
Governance of Information Technology (ICT)
What is Enterprise Architecture Planning
Information Technology Sourcing (IT Sourcing)
Information Technology Operations (IT Operations)
Chief Information Officer (CIO)
Leadership