The ADL Matrix, developed by the consulting firm Arthur D. Little in the late 1970, is all about how industry maturity and competitive position affects your strategy. It compares two axes: Industry maturity (embryonic, growing, mature, aging) and competitive position (from dominant to weak). For each quadrant, a number of generic strategies are identified: invest or divest, build market share, go for a niche positioning, etc.
The ADL matrix is most often associated with developing strategies for business units, but it also works just as well for product lines or individual products.
The trick in applying the ADL matrix is obviously to pin point the “right” quadrant. Defining industry maturity is notoriously difficult, and even mature industries or product categories can be re-energized by innovative new products. So in some ways, the ADL matrix is a bit “old fashioned,” but it’s nevertheless a good starting point to ask some fundamental questions.
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