Actions

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.[1]


ADL Matrix
source: StrategyHub


References

  1. 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