(Source: Lancaster & Massingham, 1998, Pg.84-86)

• Similar to the General Electric's matrix, with two dimensions (company's competitive capabilities [vertical], prospects for sector profitability [horizontal])
• The firms products are plotted into one of the nine cells
• HORIZONTAL AXIS: includes the criteria of market growth rate, market quality, industry situation and environmental considerations and is marked out of five stars. Each of these criteria may be assessed using additional ones like pricing behaviour (for 'market quality'), and this is also assessed to find the "overall score on sector profitability is the total of the ratings on all four factors" (pg.85)
• VERTICAL AXIS: The same 'starred' approach is used, but in this approach we asses on the basis of market position, product research and development, and production capability. Again these can be further broken down!
• "Shell emphasise that whatever strategy is eventually selected, the aim is that it should be 'resilient', i.e. viable in a diverse range of potential futures" (pg.85)
• Ideally it is hoped that all possible future scenarios will have been evaluated, the results should be acceptable and no potential 'disasters' should result.

 LIMITATIONS OF THE SHELL DPM

• Assumes that the same set of factors is universally applicable for assessing the prospects of any product/business
• Relevant factors and thus their relevant importance will "vary both according to the firm's products and the individual characteristics of each company" (pg.86)
• No guidelines on how to implement the strategy, as mentioned in the cell of the matrix