Strategy Management

1
Strategy Management
A CURA DI GIUSI SPAGNUOLO

• The principal aspects in order to develop the
  internal and exsternal organization of one
  corporate.

2
ADL Matrix
Strategy Management
Stage 13

• The ADL matrix by Arthur D. Little is a portfolio
  management method that is based on product life
  cycle thinking.
• The strategist must identify discrete businesses
  using the following criteria as guidelines
• Common rivals
• Prices
• Customers
• Quality/Style
• Substitutability
• Divestment or liquidation

3
Strategy Management

• The industry life cycle stage of each business is
  made on the basis of
• Business market share
• Investment
• Profitability and cash flow
• The competitive position of a firm is based on an
  assessment of the following criteria
• Dominant rare. Often results from near monopoly
• Strong A strong business can usually follow a
  strategy without too much consideration of moves
  from rivals
• Favorable industry is fragmented. No clear
  leader among stronger rivals
• Tenable business has a niche, either
  geographical or defined by the product
• Weak business is too small to be profitable or
  survive over the long term.

4
Strategy Management

• Known limitations of the ADL matrix include
• There is no standard length of life cycles
• Determining the current industry life cycle phase
  is awkward
• Competitors may influence the length of the life
  cycle

5
Outline of ADL Matrix
Strategy Management
Industry life cycle stage
Competitive Position