Competition Profile Matrix

The video tutorial explains the Competitive Profile Matrix (CPM), a tool used in strategy development to assess a company's position relative to its competitors. It involves identifying critical success factors, assigning weights to them, and rating companies on these factors. The scores help in understanding a company's strengths and weaknesses, and in identifying opportunities and risks in the market.

What is the primary purpose of the Competitive Profile Matrix (CPM)?

• To develop new products

• To evaluate internal company processes

• To assess employee performance

• To understand the external environment and competition

What are Critical Success Factors in the context of CPM?

• Factors that determine a company's internal efficiency

• Factors necessary for a company's existence and growth in an industry

• Factors related to employee satisfaction

• Factors that influence global market trends

How are weights assigned to Critical Success Factors in CPM?

• Based on the company's annual revenue

• According to the importance of each factor for success

• By the number of competitors in the market

• Randomly by the management team

What scale is used to rate companies and their competitors on Critical Success Factors?

• 0 to 4 scale

• 1 to 5 scale

• 1 to 3 scale

• 0 to 10 scale

What can a low score in a Critical Success Factor indicate?

• An increase in market share

• A strong market position

• A potential risk or opportunity

• A high level of customer satisfaction