1 MIN READ

How to manage a product portfolio using dimensions of environment and business strengths ?

June 27, 2017
-
Author: ProductLeaders

Problem

.

How to manage a product portfolio using dimensions of environment and business strengths ?


.

Action

.
  • Source: LINK

The ADL portfolio management approach uses the dimensions of environmental assessment and business strength assessment. The environmental measure is an identification of the industry’s life cycle. The business strengths measure is a categorization of the corporation’s SBU’s into one of five (6) competitive positions: dominant, strong, favorable, tenable, weak (and non-viable). This yields a 5 (competitive positions) by 4 (life cycle stages) matrix. Positioning in the matrix identifies a general strategy.

 

In the ADL approach, the line of business or SBU is not especially defined by a product or organizational unit. The strategist must identify discrete businesses by finding commonalities among products and business lines using the  following criteria as guidelines:

  • Common rivals
  • Prices
  • Customers
  • Quality/Style
  • Substitutability
  • Divestment or liquidation

This assessment of the industry life cycle stage of each business is made on the basis of:

  • Business market share
  • Investment
  • Profitability and cash flow

 

The competitive position of a firm is based on an assessment of the following criteria:

  • Dominant: Rare. Often results from a near monopoly or protected leadership.
  • Strong: A strong business can usually follow a strategy without too much consideration of moves from rivals.
  • Favorable: Industry is fragmented. No clear leader among stronger rivals.
  • Tenable: Business has a niche, either geographical or defined by the product.
  • Weak: Business is too small to be profitable or survive over the long term. Critical weaknesses.

 

Known limitations of the ADL framework include:

  • There is no standard length of life cycles
  • Determining the current industry life cycle phase is awkward,
  • Competitors may influence the length of the life cycle.

Outcome

.

 

.

.

.

← PREVIOUS POST
What are some of the must haves before an item makes it on your roadmap ?
NEXT POST →
How to determine priorities in product portfolios using BCG Model ?

Related News

Other posts that you should not miss.

What is a product life cycle curve & its stages ?

May 27, 2012
-
Posted by globalproductleaders

Problem . What is a product life cycle curve & its stages ? . Action . As consumers, we buy millions of …

Read More →
Author: ProductLeaders
2 MIN READ

What is a typical product team hierarchy ?

February 27, 2013
-
Posted by globalproductleaders

Problem . What is a typical product team hierarchy ? . Action . Below diagram depicts a product team hierarchy   Outcome …

Read More →
Author: ProductLeaders
1 MIN READ

How to prioritize & align requirements to company’s goals ?

April 3, 2014
-
Posted by globalproductleaders

Problem . How to prioritize & align requirements to company’s goals ? . Action . Use a decision matrix template as below …

Read More →
Author: ProductLeaders
1 MIN READ
Recent Posts
  • What is the pragmatic marketing framework ?
  • How to prioritize user stories using weighted scoring ?
  • How to write good agile user stories (quick overview) ?
  • How to prioritize features in a Roadmap using the Value v/s Effort Model ?
  • How to determine priorities in product portfolios using BCG Model ?
Archives
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • June 2016
  • May 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • May 2015
  • April 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • August 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
Categories
  • Author: ProductLeaders
| How to manage a product portfolio using dimensions of environment and business strengths ?