Cpm matrix

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Competitive Profile Matrix

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Cpm matrix

  1. 1. Competitive Profile Matrix F11011 – F11020
  2. 2. Contents Need for an external comparison The competitive profile matrix Building the matrix Understanding a CPM for a company Conclusion
  3. 3. Need for ExternalComparison 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. 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. 5. Tools for an External Audit Porter’s Five  External Factor Forces Model Evaluation (EFE) ◦ Rivalry among Matrix competitors ◦ Key factors ◦ Potential entry of ◦ Importance of new competitors factors ◦ Potential ◦ Ranking for factors development of ◦ Sum of weighted substitute products score ◦ Bargaining power of suppliers  Competitive Profile ◦ Bargaining power of Matrix consumers
  6. 6. The Competitive Profile Matrix StepsStep 1 • Identify key factors • Assign factors to each factor ranging from 0 to 1Step2 • Rate each factor from 1 to 4 for each firm. (1 – GreatestStep 3 weakness 4 – Biggest Strength) • Calculate weighted score for each factorStep 4 • Find total weighted score for each firmStep 5
  7. 7. CPM Matrix Example College Comparisons A B C D ECritical Success Factors Weight Rating Wt. Score Rating Wt. Score Rating Wt. Score Rating Wt. Score Rating Wt. ScoreFaculty 0.15 3 0.45 3 0.45 3 0.45 3 0.45 3 0.45Infrastructure 0.15 1 0.15 4 0.6 3 0.45 3 0.45 4 0.6Placements 0.15 2 0.3 4 0.6 4 0.6 2 0.3 3 0.45ROI 0.1 3 0.3 2 0.2 4 0.4 2 0.2 3 0.3College Brand 0.2 2 0.4 4 0.8 4 0.8 2 0.4 3 0.6Campus Life 0.05 1 0.05 4 0.2 3 0.15 3 0.15 3 0.15Location 0.1 4 0.4 4 0.4 4 0.4 2 0.2 3 0.3Student Diversity 0.1 2 0.2 3 0.3 3 0.3 3 0.3 2 0.2TOTAL 1 2.25 3.55 3.55 2.45 3.05
  8. 8. Comparison Of Key Factors Of Different Colleges 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0
  9. 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. 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. 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

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