Hello Arthur D Little (ADL) Strategic Condition Matrix

• Lesson
• Exercise
• Answer

A – This SBU is one of the biggest and oldest brands of lens photographical lenses in the World. It used to be the biggest supplier of lenses to both professional and amateur photographers, before the growth and current dominance of digital cameras. It needs to invest in a change programme that will downsize its business and give it a new and rejuvenated strategic direction.

Ans: Favourable/Mature – This SBU operates in a niche or narrow segment. It should target and defend educational sectors within its traditional markets.

E – This SBU manufactures and promotes the World’s most well know lenses brand. This designer lens is marketed through retails outlets throughout the World and tends to command a premium price not only for precision but also through its association with fashion and celebrity.

Ans: Strong/Embryonic – Embryonic since it is based upon fashion which tends to have short Product Life Cycles (PLC), and so industries are never mature and always rejuvenating.

Ans: Weak/Aging – Manage for change if the brand can be rejuvenated, or with draw.

B – This SBU manufactures high technology lasers that are used in the manufacture of specialist components for the production of aircraft. It has a number of unique patents as well as a 10 year contract with the World’s largest aircraft manufacturer.

Ans: Dominant/Growth – Act offensively and grow business. Be prepared to defend your position from competitors with rival solutions.

C – This SBU is photocopier manufacturer that is currently under increasing attack from budget priced competitors that offer a very similar product and service package with a no frills brand. The SBU is finding it difficult to hold on to market share.

Ans: Tenable/Mature – Try to recapture market share, but may ultimately be doomed so withdrawal may be necessary sooner rather than later.

D – This SBU markets high quality optical equipment for use in laboratories, mainly in schools in Europe and the United States.