Arthur D. Little’s industry maturity/competitive position matrix - Marketing Management

A similar approach to that developed by Porter is that used by the business consultants, Arthur D. Little.2 A summary of this approach. The two axes of the matrix comprise ‘stage of industry maturity’ on the horizontal axis and ‘competitive position’ on the vertical axis. Stage of industry maturity is broken into four categories: embryonic, growth, maturity and ageing. A classification of which of these four the industry is in, is determined by assessing eight key descriptions:

Industry life cycle and strategic position

Industry life cycle and strategic position

  • rate of market growth;
  • industry potential;
  • product line;
  • number of competitors;
  • market share stability;
  • purchasing patterns;
  • ease of entry;
  • technology.

A ‘mature’ industry, for instance, is characterized by slow or negligible rates of growth; little or no further growth potential; few changes in breadth of product line; stable or declining numbers of competitors; stable market share positions; established buying patterns; high barriers to entry; and process and materials innovations in technology.

The A.D. Little competitive position/industry maturity matrix

The A.D. Little competitive position/industry maturity matrix

In both Porter’s and the Arthur D. Little approach we see a strong flavour of their intellectual forebear, the basic product life cycle. This, in itself, is a measure of the enduring impact which the PLC concept continues to have in strategic market planning.

We now turn our attention to another early tool of strategic marketing planning, namely, the ‘experience curve’ effect.


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