Competitive Analysis : The Competitive Profile Matrix ( Cpm )

1519 WordsApr 10, 20167 Pages
Competitive Analysis The Competitive Profile Matrix (CPM) is a tool that compares the firm and its rivals and reveals their relative strengths and weaknesses (Competitive Profile Matrix, 2013, October 29). These factors are influenced by external and internal challenges. The illustrated CPM below compares Domino’s Pizza with two of its top competitors, Pizza Hut and Papa John’s. The results of the CPM give Domino’s Pizza a 3.3, which is above average in its respective industry. The firm also has high market share. There is an opportunity to improve areas of product expansion and effective advertising. A strong social media presence will also help increase brand loyalty and give the firm the competitive advantage. Competitive Profile Matrix Rating Scale: poor = 1 below average= 2 average=3 above average=4 CPM Table Dominos Pizza Pizza Hut Papa John’s Critical Success Factor Weight Rating Score Rating Score Rating Score Advertising 0.10 4 0.40 4 0.40 3 0.30 Range of Products 0.10 4 0.40 4 0.40 3 0.30 Product Quality 0.10 4 0.40 4 0.40 3 0.30 Competitiveness 0.10 3 0.30 4 0.40 3 0.30 Financial 0.10 3 0.30 3 0.30 3 0.30 Expansion 0.10 3 0.30 3 0.30 3 0.30 Market Share 0.15 4 0.40 4 0.40 2 0.20 Price 0.15 4 0.40 3 0.30 4 0.40 Brand Loyalty 0.10 4 0.40 3 0.30 3 0.30 Total 1.00 3.3 3.2 2.7 External Factor Evaluation The External Factor Evaluation (EFE) matrix is a tool that helps management visualize and prioritize opportunities and threats that the business may

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