ADL Matrix

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.

source: StrategyHub

See Also

• Strategic Business Unit