ADL Matrix:

The ADL matrix has derived its name from Arthur D. Little is a
portfolio analysis method that is based on product life cycle. The
approach forms a two dimensional matrix based on stage of industry
maturity and the firms competitive position.

Competitive Stage of industry maturity

Position Embryonic Growth Mature Ageing
Dominant Grow Grow Defend Harvest
Strong Grow Grow Defend Harvest
Favourable Grow Grow Defend Retrench
Tenable Grow Grow Retrench Retrench
Weak Grow Retrench Retrench Retrench
The competitive position of a firm is based on an assessment of the
following criteria:
Dominant: Clear market leader or has a monopoly position. SWOT Analysis:
Strong: Company has a strong market presence and loyal
customers.
Favourable: Companies operate in fragmented markets and no
single firm controls all market share.
Tenable: Firms within this category are able to perform
satisfactorily.
Weak: The performance of firms in this category is
generally unsatisfactory. The comparison of strengths, weaknesses, opportunities, and threats is
Ansoffs Product-Market Growth Matrix: normally referred to as a SWOT analysis.
The Ansoffs product-market growth matrix (proposed by Igor Ansoff) Strength: Strength is an inherent capability of the organization which it
is a useful portfolio-planning tool for identifying company growth can use to gain strategic advantage over its competitors.
opportunities. Weakness: A weakness is an inherent limitation or constraint of the
Market Penetration: Market penetration refers to a growth strategy organization which creates strategic disadvantage to it.
where the business focuses on selling existing products into existing Opportunity: An opportunity is a favourable condition in the
markets. organisations environment which enables it to strengthen its position.
Market Development: Market development refers to a growth Threat: A threat is an unfavourable condition in the organisations
strategy where the business seeks to sell its existing products into new environment which causes a risk for, or damage to, the organisations
markets. position.
Product Development: Product development refers to a growth
strategy where business aims to introduce new products into existing
markets.
Diversification: Diversification refers to a growth strategy where a
business markets new products in new markets.