COMPETITIVE PROFILE
MATRIX
Prepared by:
Sara Jane E. Magsipoc
COMPETITIVE PROFILE MATRIX
Competitive profile matrix show the clear picture
to the firm about their strong points and weak
points relative to their competitors.
Competitive profile matrix is an essential
strategic management tool to compare the firm
with the major players of the industry.
COMPETITIVE PROFILE MATRIX
Internal Factors Evaluation matrix only internal
factors are evaluated and in External Factors
Evaluation matrix external factors are evaluated
but CPM include both internal and external
factors to evaluate overall position of the firm
with respective to their major competitors
THE CPM CONSISTS OF FOLLOWING
ATTRIBUTES:
Critical Success Factors
Rating
Weight
Weighted Score
Total Weighted Score
CRITICAL SUCCESS FACTORS
Critical success factors are extracted after deep
analysis of external and internal environment of
the firm.
The higher rating show that firm strategy is
doing well to support this critical success factors
and lower rating means firm strategy is lacking
to support the factor.
RATING
Rating in CPM represent the response of firm
toward the critical success factors.
The Higher the rating the better the response of
the firm towards the critical success
factor ,rating range from 1.0 to 4.0 and can be
applied to any factor.
RATING
There are some important point related to rating in
CPM.
Rating is applied to each factor.
The response is poor represented by 1.0
The response is average is represented by 2.0
The response is above average represented by
3.0
The response is superior represented by 4.0
WEIGHT
Weight attribute in CPM indicates the relative
importance of factor to being successful in the
firm’s industry. The weight range from 0.0 means
not important and 1.0 means important, sum of
all assigned weight to factors must be equal to
1.0 otherwise the calculation would not be
consider correct.
WEIGHTED SCORE
Weighted score value is the result achieved after
multiplying each factor rating with the weight.
TOTAL WEIGHTED SCORE
The sum of all weighted score is equal to the total
weighted score, final value of total weighted score
should be between range 1.0 (low) to 4.0(high).
The average weighted score for CPM matrix is
2.5 any company total weighted score fall below
2.5 consider as weak..
TOTAL WEIGHTED SCORE
The company total weighted score higher then
2.5 is consider as strong in position.The other
dimension of CPM is the firm with higher total
weighted score considered as the winner among
the competitors
THE CPM STEPS:
Step 1: Identify key factors
Step2: Assign factors to each factor ranging from 0
to 1
Step 3: Rate each factor from 1 to 4 for each firm. (1
– Greatest weakness 4 – Biggest Strength)
Step 4: Calculate weighted score for each factor
Step 5: Find total weighted score for each firm
CPM Matrix Example
College Comparisons
A B C
Critical Success Factors Weight Rating Wt. Score Rating Wt. Score Rating Wt. Score
Faculty 0.15 3 0.45 3 0.45 3 0.45
Infrastructure 0.15 1 0.15 4 0.6 3 0.45
Placements 0.15 2 0.3 4 0.6 2 0.3
ROI 0.1 3 0.3 2 0.2 2 0.2
College Brand 0.2 2 0.4 4 0.8 2 0.4
Campus Life 0.05 1 0.05 4 0.2 3 0.15
Location 0.1 4 0.4 4 0.4 2 0.2
Student Diversity 0.1 2 0.2 3 0.3 3 0.3
Total 1 2.25 3.55 2.45
Comparison of Key Factors of
Different Colleges
0.9
0.8
0.7
0.6
0.5
A
0.4 B
C
0.3
0.2
0.1
0
Faculty Infrastructure Placements ROI College Brand Campus Life Location Student
Diversity
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
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
THANK YOU
REFERENCES
Strategic Management by Fred R. David
http://mba-
lectures.com/management/strategicmanagement/
974/competitive-profile-matrix-
formcdonalds.html
www.shiksha.com
