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The Competitive Profile Matrix (CPM) reveals how a focal firm

May 17, 2022

The Competitive Profile Matrix (CPM) reveals how a focal firm compares to major competitors across a range of key factors. This comparative analysis provides important strategic information regarding a firm’s competitive advantages or disadvantages in a given industry. In determining what factors to include in a CPM, tailor the factors to the particular industry. For example, in the airline industry, such factors as on-time arrival, leg room in planes, and routes served are far better factors to include than merely including “quality of service” or “financial condition” as factors. Similar to an EFE, a CPM uses weights and total weighted scores, which quantify the importance of a given factor to the industry, as well as total weighted scores, which quantify how well a given firm is doing relative to the other two firms evaluated in the CPM. The key difference between a CPM and EFE is that a CPM compares firms and an EFE Matrix analyzes how a firm internally is responding to key external issues.

The CPM is for the company COCA COLA

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