The X-axis of the matrix is made up of the five different stages of the life cycle of the industry
Horizontal Axis
The Y-axis of the matrix comprises the competitive position of the business being analysed
Vertical Axis
There are certain steps to follow when using the A D Little life cycle approach.
Step 1. Identifying the strategic business units
Step 2. Classifying each SBU in terms of industry maturity
Step 3. Characterisation of each SBU’s competitive position
Step 4. Position the SBU’s on the A D Little matrix according to their classifications
Step 5. Selection of an appropriate strategic thrust depending on the natural strategy of the SBU.
Step 6. Selection of an appropriate generic strategy
Step 7. Testing for financial and management feasibility
Step 8. Analysing the risk involved
The A D Little Matrix