ADL Matrix

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Free editable ADL matrix templates to kickstart analyzing your competitive position
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Guide and Best Practices

The ADL matrix also known as the strategic condition matrix is a portfolio management method. Organizations use it to gain insight into their competitive position and develop business strategies based on competitive position and industry maturity. It can also be used for strategizing marketing plans for a product or product line.

How to use the ADL Matrix

Determine all the strategic business units (SBUs) of the organization.
Identify the current stage in the lifecycle of the industry of each strategic business unit you identified earlier.
There are 4 industry lifecycle stages; Embryonic (introductory stage marked by rapid market growth and little competition), Growth (where the market continues to grow as sales increase), Mature (this is where the market is stable and has a well-established customer base and a lot of competitors) and Aging (where market demand starts to fall and companies abandon the market).
Once you have assessed the phases of industry maturity, the next step is to identify the competitive position.
The matrix represents 5 categories of competitive positions; Dominant (in this position you are the market leader with little competition. It’s a rare and short-lived position), Strong (here you have a strong and stable market position despite the competition), Favorable (you fall into this category if you enjoy competitive advantage in certain segments of the market), Tenable (has a small market and stronger competitors), Weak (where the business continuously loses out on its market share).
The next step is to plot the sizes and position of your business units on the ADL matrix. You can use a Creately ADL matrix template to begin with.
Use circles to represent the SBU, and the size of the circle can be adjusted according to the size of the industry they belong to. Market share can also be highlighted on the circles by slicing them.
Want the input of other team members or external stakeholders or consultants? Simply share the diagram share link to collaborate with them in real-time.

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