The Competitive Image Matrix (CPM) describes strategic analysis that compares a business to its competitors in such a way that that business reveals its relative strengths and weaknesses. They will be evaluated on several key components such as product range/quality, customer service, brand value/reputation, marketing innovation, management and HR competencies. Let's find out about CPM with Giaiphapdonggoi.net!
1. What is CPM?
Competitive Profile Matrix CPM stands for Competitive Profile Matrix. Regardless of the industry involved, organizations have distinct strengths and weaknesses. One type may have the most recognizable brand name, while another may have the lowest production cost.
The competitive image matrix is a graphical representation of the most important businesses in a given industry, providing a reasonably detailed overview of the competitive landscape. In the matrix, businesses are rated according to critical success factors with a score. Once each business has been assessed, the matrix will naturally show where each business is relatively strong and relatively weak.
2. Main components of CPM
Let's look at the four key components of effective CPM.
The main components of CPM
Critical Success Factors
Sometimes called Key Success Factors (KSFs), these are the factors that are involved in the success or failure of a business in an industry. Of course, the success factors a business chooses to self-assess will depend on their particular industry. But in general, most CPMs will evaluate common factors such as:
Product range and quality.
Customer service.
Brand value and reputation.
Marketing and innovation.
Management and human resources.
Weight (Weighting)
Once critical success factors have been identified, they should be weighted between 0.1 and 1. For example, a weighted factor of 0.2 means that it is not a particularly large driver of success. successful. On the other hand, a rating of 0.8 denotes an extremely important success factor.
A brick-and-mortar grocery store might give customer service a weight of 0.7, while an eCommerce retailer that doesn't need face-to-face interaction might give the same weighting. is 0.3.
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Score / Rating (Score/Rating)
With the critical success factors and their associated weights identified, a business can now be scored based on those factors. Most use this simple scale:
1 - main weakness - the company lags behind its competitors.
2 - minor weakness.
3 - small power .
4 - key strength - an industry or market leader.
It's important to note that scoring is an objective process - so some businesses may find value in expanding the scale to achieve better objectivity. In any case, the weight of each factor must now be multiplied by the score to give a weighted score for each competing business.
Total Score
To get a total score for each opponent, simply add the weighted scores together. The company with the highest score is the strongest in the industry, relative to its competitors. However, even businesses in a strong competitive position will have a relative weakness or two. This is another strong point of CPM, as it allows competing organizations to increase their market share.
3. Advantages and disadvantages of CPM
Advantages and disadvantages of CPM
Advantages
CPM allows you to investigate the relative qualities and shortcomings of your competitors, which allows you to create a successful aggressive system.
To create a CPM, you should first recognize the basic performance factors. Recognizing these factors is an essential part of building a robust system
By placing all competitors on a basic one-page matrix, it makes it simple to look at changed organizations.
Aggregation scores allow you to effectively see which organization has the best aggregation service in the mall.
Defect
Scores are assigned to subjectively specified baseline performance factors. This implies that they will probably suffer from some error to some extent.
It can be difficult to determine a candidate's scores on basic performance factors, solely on the grounds that this may not be open information.
When using CPM, a shortfall in one area can affect your composite score, as it can be invaluable if there's a deliberate low score in a range due to the focal points the low score provides. another area.
4. What is the contrast between EFE matrix and CPM matrix?
The following is part of the important contrast between EFE (external factor assessment) and CPM (competitive image matrix):
What is the contrast between EFE matrix and CPM matrix?
In extrinsic assessment, the underlying performance factors are clustered into circumstance and hazard even though such capture does not exist in the positive profile grid.
In the competitive profile matrix, the underlying performance factors include both internal and external issues.
In the external factor assessment, the weighted score of one company cannot be compared with the weighted sum of the competitor companies through such correlation that can be visualized in the profile matrix. compete.
If you want to use competitor strengths and weaknesses analysis, you must first know what the competitive image matrix is, then you can create an advantage for your business. The Competitive Image Matrix (CPM) can be used to compare one company to another that is critical to success and is a strategic tool that can be helpful in helping you define your strategy. Friend. The total score of a particular company shows how competitive that company is in the market compared to other companies.
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