Cpm matrix

Competitive Profile Matrix

1. Competitive Profile Matrix F11011 – F11020

2. Contents Need for an external comparison The competitive profile matrix Building the matrix Understanding a CPM for a company Conclusion

3. Need for External Comparison Understand key opportunities and threats Develop appropriate strategies to maximize opportunities and counter threats Requires competitive intelligence in the following spheres Economic Social Political Legal Technological

4. External Information Sources Indexes – Wall Street Index, Business Periodicals Index Internet Sources – New York Stock Exchange, Investor Guide, BigBook.com Magazines – Barrons , Forbes, Washington Post Government – Department of Commerce, Science and Technology Consultants – Boston Consulting Group, Deloitte

5. Tools for an External Audit Porter’s Five Forces Model Rivalry among competitors Potential entry of new competitors Potential development of substitute products Bargaining power of suppliers Bargaining power of consumers External Factor Evaluation (EFE) Matrix Key factors Importance of factors Ranking for factors Sum of weighted score Competitive Profile Matrix

6. The Competitive Profile Matrix Steps

7. CPM Matrix Example College Comparisons

8. Comparison Of Key Factors Of Different Colleges

9. Advantages Critical success factors identified Strong and weak points of firm with respect to competitors found out Includes both internal and external factors as parameters Comparative analysis made easier

10. Limitations Differences in overall scores of two firms do not reveal by how much a firm is better than the other Possible errors in factor weightage Gives relative strength of firm, not an exact number Not a substitute for intuitive judgement

11. References Strategic Management by Fred R. David http :// mba-lectures.com/management/strategic-management/974/competitive-profile-matrix-for-mcdonalds.html www.shiksha.com