Competitive Profile Matrix (CPM)

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">&NewLine;Here we will be using weighted rating system for the construction of competitive profile matrix&period; Some of the important steps involved in the construction of competitive profile matrix are given below&period;<&sol;p>&NewLine;<ol>&NewLine;<li>&NewLine;<div align&equals;"justify">In the first column&comma; lists down all the key success factors of Industry &lpar;usually from 6 to 10&rpar;&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">In the second column&comma; assign weights to each factor ranging from 0&period;0 &lpar;not important to 1 &lpar;most important&rpar;&period; Greater weights should be given to those factors which have grater influence on the organizational performance&period; The sum of all weights must equal 1&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Now rate each factor ranging from 1 to 4 for all the firms in analysis&period; Here&comma; rating 1 represents major weakness&comma; rating 2 shows minor weakness&period; Similarly&comma; rating 3 indicates minor strength whereas rating 4 shows major strength&period; It means that weakness must receive 1 or 2 rating while strength must get 3 or 4 rating&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Calculate weighted score by multiplying each factor&&num;8217&semi;s score by its rating&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Find the total weighted score of all the firms by adding the weighted scores for each variable&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<p align&equals;"center"><strong>Competitive Profile Matrix for Dell Computer<&sol;strong><&sol;p>&NewLine;<p align&equals;"justify"><a href&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;10&sol;image5&period;png"><img style&equals;"border-right-width&colon; 0px&semi; display&colon; block&semi; float&colon; none&semi; border-top-width&colon; 0px&semi; border-bottom-width&colon; 0px&semi; margin-left&colon; auto&semi; border-left-width&colon; 0px&semi; margin-right&colon; auto" title&equals;"image" border&equals;"0" src&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;10&sol;image&lowbar;thumb5&period;png" width&equals;"500" height&equals;"394" &sol;><&sol;a><&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<p align&equals;"justify">The overall competitiveness of a firm can be evaluated on the basis of its overall strength rating&period; If the difference between a firm&&num;8217&semi;s overall rating and the scores of lower-rated rivals is higher then the firm has greater net competitive advantage&period; On the other hand&comma; if the difference between a firm&&num;8217&semi;s overall rating and the scores of higher-rated rivals is bigger then the firm has greater net competitive disadvantage&period; In the above example&comma; competitive profile matrix shows that the total weighted score of Dell is higher than Gateway and Apple which means that Dell enjoys the strongest competitive position&period; On the other hand&comma; Apple has net competitive disadvantage because of its lower total weighted score than Dell and Gateway&period; <&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;