Purpose
ADL Matrix technique is used to manage the business by making judgement around the overall market life cycle and own placement within that market.
The ADL matrix is also called as the strategic condition matrix, which is a quick tool for creating a list of products. The ADL matrix was first invented in 1970 by Arthur D. Little , one of the best known consulting firm intended to help the company manage its collection of product businesses as a portfolio. It is a management technique that is based on the product life cycle. The ADL matrix represents the company’s various businesses in a 2-dimensional matrix. It is a structured methodology for consideration of strategies which are dependent on the life cycle of the product. The ADL approach uses the dimensions of environment assessment and business strength assessment that is the competitive position and the industry maturity. It is used to gain more insight into the competitive position of the organization.
The ADL matrix is used for developing the business strategies, as well as for improving the market plans of a particular product line or a single product. In ADL approach, the line of business is define by a product or organizational unit. It must identify the businesses by finding commonalities among products and business lines using the following criteria as a guideline,
The industry life cycle stage of each business is made on the basis of business market share, investment, profitability, and cash flow. The ADL matrix will only determine the current industry life cycle phase. It is combination of two dimensional matrix that helps to use the ADL for marketing decision making in the business solutions.
Some of the articles related to ADL matrix techniques are as follows,