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Portfolio Planning Matrices

The ADL matrix is a portfolio planning tool developed in the 1980s by Arthur D. Little to help companies manage their collection of product businesses. The matrix represents businesses in different growth stages on the columns and competitive positions in rows, resulting in a 4x5 grid with 20 cells. Companies place their product businesses in the appropriate cells based on growth stage and competitive position. The distribution of businesses across the matrix helps assess if a company's product mix is balanced now and for the future.

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Barry Cliff Marbaniang
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147 views1 page

Portfolio Planning Matrices

The ADL matrix is a portfolio planning tool developed in the 1980s by Arthur D. Little to help companies manage their collection of product businesses. The matrix represents businesses in different growth stages on the columns and competitive positions in rows, resulting in a 4x5 grid with 20 cells. Companies place their product businesses in the appropriate cells based on growth stage and competitive position. The distribution of businesses across the matrix helps assess if a company's product mix is balanced now and for the future.

Uploaded by

Barry Cliff Marbaniang
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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c  Also called the 

 c c c 
 and the 
 , a simple tool developed in the 1980's by
c the professional services firm Arthur D. Little intended to help a company manage its collection of product
 c  businesses as a portfolio. The key concept is consideration of where each product is within its business life cycle.


Like other portfolio planning matrices, the ADL matrix represents a company's various businesses in a 2-
dimensional matrix. In this case, the columns of the matrix represents the growth stage of the business product
(embryonic, growth, mature, or aging) and the rows represents the product's competitive position in the
marketplace (dominant, strong, favorable, tenable, or weak or nonviable). This results in a 4 by 5 matrix with 20
cells. The company's various product businesses are placed within the matrix, and the positions are associated
with logical business strategies as shown below:

 c c c  


 

The distribution and trajectory of the businesses across the matrix helps indicate whether the firm's product mix is
well balanced now and in the future. For example, the company will need to maintain a continuing set of mature
businesses in order to generate cash to support new embryonic and growth operations.

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