Build a Compelling Competitive Matrix

1. Build a
Compelling
Competitive
Matrix

2. What is a
Competitive
Matrix?
Shows your competitive landscape and how you are
positioned
against your competition
•You are in control - you pick the strengths that best
represent your
business
•Your strengths must be relevant to your target market
•Your combination of strengths must be believable

3. Purpose of the
Competitive
Matrix
Marketing Tool – even though people
reading it know you
can manipulate it
•Investors love seeing you up and to
the right
•Shows viability of the business (helps
prove there is a
market)
•Illustrates competitive strengths and
differentiation
•Quick and easy way to see the
competitive landscape
Steps in Building
Your
Competitive
Matrix
Part 1 - Select your competitive
strengths to measure
•Part 2 - Select your competitors
•Part 3 - Evaluate and plot your
competitors

4. Part 1 - Steps in Building Your Competitive Matrix
Step 1 – Come up with a few key strengths of your business (max 5 to 6)
Here are some examples:
•Quality
•Price
•Authenticity
•Completeness of offering
•Breadth of solution or product line
•Depth of solution or product line
•Expertise
•Service level
•Convenience
•Sophistication of technology
•Ability to customize

5. Part 1 - Steps in Building Your
Competitive Matrix
Step 1 – Examples for a Chocolate Business
•High Quality Chocolate
•Uniqueness of Amazing Flavors
•Beautifully Designed Chocolates
•High Level of Service
•Amazing In-Store Experience
•Unique Packaging
•Personalized Chocolates

6. Part 1 - Steps in Building
Your Competitive
Matrix
Step 2: Score your strengths - ask
yourself, which strengths are most
important to your target market?
•Your strengths must be RELEVANT and
very important to the market
•Ask yourself: Which strengths are
most important to your target
market?
•Score each strength based on its
relevance to your target market
•Cross off any strengths that are not
relevant

7. Part 1 - Steps in Building
Your Competitive Matrix
Step 3 – Identify the strongest pairing of
strengths
•Ask yourself: Which combination of strengths
makes me completely unstoppable?
•Compare each strength against the others one
by one
•Look for the two strengths that, when
combined, create that 1+1 = 1 million
•Also, see how each pair of strengths makes you
the strongest amongst your competitors
•Final check – check to make sure that
combination still makes sense to your target
market

8. Part 1 - Steps in
Building Your
Competitive Matrix
Step 4 - Express each strength in a range or
spectrum (low to high, bad to good, small to
large)
Examples -
•No Service ----- White Glove Service
•Small Selection ----- Large Selection
•Limited Solution ----- Compete Solution
•Low Quality to Highest Quality
•Highest Price to Lowest Price
•Conservative ----- Progressive
•Inconvenient ----- Very Convenient
•Processed Ingredients -----Healthy/Fresh
Ingredients
•Non-Customizable ----- Highly Customizable

9. Part 2 – Select Your Competitor
A few words of advice:
•Pick 7 – 10 competitors
•Pick a wide variety of competitors
•Don’t just pick the weak competitors
•Make sure you pick some bigger names/well known names if you can
(makes you look better)
•Don’t be afraid to have competitors in the 4thquadrant

10. Part 3 – Evaluate and Plot Your
Competitors
A few words of advice:
•Be fair - people will see through you if you
try to manipulate
•Use your best judgement based on your
industry knowledge
•Run the plotting by a few people who know
the industry to see if they
agree
•It is OK to be a bit generous with your
positioning