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
1. 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.
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.
Also Read: GE Mckinsey Matrix
