Sample competitive profile matrix (CPM) · Tala Provisions, Inc.
The Competitive Profile Matrix compares a company with its main rivals on the factors that decide success in the industry. Tala Provisions faces Duyan Coffee Co., a mall café chain, and Ambon Roasters, an online-first roaster. Both rivals are fictional. Change a rating and see the ranking move. How it's scored
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How the CPM is scored
- Choose the critical success factors for the industry, the few things every player is judged on.
- Weight each one from 0.000 to 1.000. The weights must sum to 1.000, and they are the same for every company.
- Rate each company on each factor: 4 superior, 3 above average, 2 average, 1 poor.
- Multiply weight by rating for each company and add them up. The company with the highest total ranks first.
Total = Σ (weight × rating), per company. A company with a missing rating gets no total; a blank is never read as 0.
The CPM uses the same 1-to-4 scale as the EFE and IFE, so a 4 always means superior. A success factor can be internal, like freshness, or about the market, like reach, as long as every company can be rated on it.
Worked example: Tala Provisions
The ranking reads: 1st Tala Provisions, Inc. 2.95 · 2nd Duyan Coffee Co. 2.80 · 3rd Ambon Roasters 2.55. Tala comes first, narrowly, on the strength of bean quality and freshness, where it is rated superior. Duyan Coffee Co. leads on number of stores and on price. Ambon Roasters leads on online ordering and delivery.
| Critical success factor | Weight | Tala Provisions, Inc. rating | Tala Provisions, Inc. score | Duyan Coffee Co. rating | Duyan Coffee Co. score | Ambon Roasters rating | Ambon Roasters score |
|---|---|---|---|---|---|---|---|
| Bean quality and freshness | 0.30 | 4 | 1.20 | 2 | 0.60 | 3 | 0.90 |
| Price competitiveness | 0.20 | 3 | 0.60 | 4 | 0.80 | 2 | 0.40 |
| Number and reach of stores | 0.20 | 2 | 0.40 | 4 | 0.80 | 1 | 0.20 |
| Online ordering and delivery | 0.15 | 3 | 0.45 | 2 | 0.30 | 4 | 0.60 |
| Brand awareness | 0.15 | 2 | 0.30 | 2 | 0.30 | 3 | 0.45 |
| Total | 1.000 | 2.95 | 2.80 | 2.55 |
The gap between first and second is small, so the lead is fragile. It rests on one factor Tala does best and survives two it does worst: store reach and brand awareness.
Read the contributions, not just the totals. Duyan's lead on stores counts for more than Ambon's lead on online ordering only if stores carry the larger weight. Change the store weight and the order of the top two can change. That sensitivity is exactly what a panel will probe.
Where it fits
The CPM sits beside the EFE and IFE in the input stage. Its ranking is evidence for the competitive-position call in the Grand Strategy matrix, and the gaps it shows (stores, awareness) are the weaknesses a TOWS strategy can target.
Common mistakes
- Using external opportunities and threats as success factors. A CSF is something a company can be good or bad at, such as freshness or store reach, not a market trend.
- Different weights per company. The weights describe the industry, so every company shares them.
- Choosing rivals that are not real competitors for the same customer. Compare against who the customer would pick instead.
FAQs
How many competitors should a CPM include?
Two or three main rivals is common. The editor allows up to six companies in total.
What is the difference between the CPM and the EFE?
The EFE rates one company against outside forces. The CPM rates several companies against the same success factors, so you can compare them.
Can two companies tie?
Yes. Tied companies share a rank. Say in your paper what separates them.
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