Question

What is meant by "A Competitive Profile Matrix (CPM)"? How does it relate to a company's strategy?

Answer 1

Competitive Profile Matrix is a type of matrix which felicitates the managers in understanding the rivals of the company as well as external environment. This matrix is very important when it comes to competing with the major players of the industry in which the companies deal. Furthermore, the managers bring out the positive points/strength as well as the weakness of the company as compared to the rivals. Through this matrix, the manager analyses its rivals and come to know that at what are their status against rivals and how well they are performing when it comes to competing with the market leaders of the industry. Competitive Profile Matrix is related to the company’s strategies by showing the strength and weaknesses of the firm. With the help of this the managers take strategic decisions by finding out potential opportunities which are going to be in the economy in the coming time. Further, the managers efficiently highlight their value propositions to their consumers.