Question

What is meant by "a Competitive Profile Matrix (CPM)"? How is this related to a company's strategy?

Answer 1

Competitive Analysis Template is a describes the differences between you and your competitors. A Competitive Profile Matrix scores each of your area of competitive importance against that your competitors. It helps in

• informed strategic decision making.
• highlight the relative strengths and weaknesses of both your competitors and your own organization.
• uncover potential opportunities in the marketplace.
• help you articulate your value proposition, as well as highlighting the value proposition of your competitors.

Different organizations will have different strengths and weaknesses, for example, while one organization might have the best cost base due to its superior supply chain, another might have the best quality product, whilst yet another organization might have the best customer service. A Competitive Profile Matrix allows you to rank you and your competitors against each other in terms of the “total package” you bring to the marketplace. Subsequently as a part of your business strategy, you can devise remedies as per your position and compete in the market in order to get increased customer base, better price or improved quality.