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ADL matrix represents several generic strategies for different situations of industry life cycle vs competitive position of the organization (or its product). These two dimensions intersection will then shape 20 recommended strategies.
  • Industry Life Cycle Stage (or industry maturity)
    1. Embryonic - the birth of the market, fast growth, no or little competition, new technology and great prices
    2. Growth - market size increases, sales increase, some competitors appeared
    3. Mature - the state of stable market, customers are making repeated orders, many competitors are focused on being "different"
    4. Aging - market volume shrinks, competition is very aggressive and thus unaffordable, so companies are leaving the market or uniting their products and customer assets
  • Competitive Position
    1. Dominant - happens rarely, appears in results of new product/technology coming to the market or very strong brand
    2. Strong - market share is strong although competitors are working aggressively
    3. Favorable - organization position is really strong in the limited segments of the market, need to be constantly protected
    4. Tenable - the company keeps strong position in small niche, specific geographic location or very focused product differences, competitors have good chances to get a chunk of this share
    5. Weak - the market share is declining and profitability is not enough
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