keymodels
The strategic condition matrix (Arthur D. Little)
How should the strategic condition matrix (arthur d. little) be measured and interpreted?
Contents
The Strategic Condition Matrix was developed by my alma mater, management and technology consultants Arthur D.
Arthur D. Little’s Strategic Condition Matrix combines competitive position with the maturity of an industry, helping a portfolio owner distinguish where to invest, hold, harvest or exit.
When to use it
- Use the model when product-market segments appear to occupy different life-cycle stages and you need another perspective on the Attractiveness/Advantage Matrix.
- Colour key
- Current segment
- New segment
- Note: Bubble diameter should be roughly proportional to current profit, except where a prospective segment has no current profit.
Origins
Management and technology consultancy Arthur D. Little developed the matrix in the late nineteen-seventies. It extended portfolio planning by asking how the strategic implications of competitive strength change as an industry moves from emergence to decline.
What it is
The horizontal axis represents competitive position, as in the Attractiveness/Advantage Matrix. The vertical dimension replaces composite market attractiveness with industry maturity. The resulting position links the company’s relative strength to the investment and cash characteristics of the life-cycle stage.
How to use it
Classify each segment into one maturity stage:
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