- \n
- Lesson<\/a><\/li>\n
- Exercise<\/a><\/li>\n
- Answer<\/a><\/li>\n<\/ul>\n
Although now slightly dated at first glance, The Arthur D Little (ADL) Strategic Condition Matrix offers a different perspective on strategy formulation. ADL has two main dimensions – competitive position<\/em> and industry maturity<\/em>. <\/p>\n
Competitive position<\/em> is driven by the sectors or segments in which a Strategic Business Unit (SBU) operates. The product or service which it markets, and the accesses it has to a range of geographically dispersed markets that are what makes up an organization’s competitive position i.e. product and place. <\/p>\n
Industry maturity<\/em> is very similar to the Product Life Cycle (PLC) and could almost be renamed an ‘industry life cycle.’ Of course not only industries could be considered here but also segments<\/p>\n
\t\t\t\t\t
![](\"\/image\/content\/adlittle.gif\")
<\/p>\nIt is a combination of the two aforementioned dimensions that helps us to use ADL for marketing decision-making. Now let’s consider options in more detail. Competitive position has five main categories:<\/p>\n
- \n
- 1. Dominant – This is a particularly extraordinary position. Often this is associate with some form of monopoly position or customer lock-in e.g. Microsoft Windows being the dominant global operating system.<\/li>\n
- 2. Strong – Here companies have a lot of freedom since position in an industry is comparatively
\n\t\t\t\t\t\t\tpowerful e.g. Apple’s iPod products.<\/li>\n - 3. Favourable – Companies with a favourable position tend to have competitive strengths in segments of a fragmented market place. No single global player controls all segments. Here product strengths and geographical advantages come into play.<\/li>\n
- 4. Tenable – Here companies may face erosion by stronger competitors that have a favourable, strong or competitive position. It is difficult for them to compete since they do not have a sustainable competitive advantage.<\/li>\n
- 5. Weak – As the term suggests companies in this undesirable space are in an unenviable position. Of course there are opportunities to change and improve, and therefore to take an organization to a more favourable, strong or even dominant position.<\/li>\n<\/ul>\n
- Exercise<\/a><\/li>\n