Definition: the ADL Matrix is a strategic portfolio management tool created by consulting firm Arthur D. Little.
It is used predominantly at the level of corporate strategy to analyze the position of strategic business units by placing strategic business units along 2 dimensions in 5 x 4 cells:
- Competitive Position (dominant, strong, favorable, tenable, weak)
- Industry Lifecycle Stage (embryonic, growth, lature, aging)
Depending on the cell, an investment strategy is recommended.