Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Cpm matrix

24,974 views

Published on

Competitive Profile Matrix

Published in: Business, Technology

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

×