CPM-Competitive Profile Matrix

EFE is used to collect competitive intelligence information from external environment. It not focuses on internal issues. Whereas CPM is little different from EFE it also consider the internal issues and best feature of CPM that it allow to compare the competitor critical success factor with your organization.

•    Find out critical success factor.
•    Assign weight to each factor depend up how important the specific factor for the organization success.
•    The weight range from 0.0 to 1.0 lower number shows no or minimum importance and high weight show more importance of factor to the company.
•    Assign rating to each factor depends upon how well organization respond to that factor.
•    Assign a 1-4 rating to each critical success factor to indicate how effectively the firm’s current strategies respond to the factor. (1 = response is poor, 4 = response is extremely good)
•    Multiply each factor’s weight by its rating to determine a weighted score.
•    Sum the weighted scores.
•    Average total weighted score is 2.5.

The above CPM matrix compares the oil marketing companies on importance factor. The total calculated figure tells the exact situation.


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One response to CPM-Competitive Profile Matrix

Thank you for your explanation, for more information about this point: ( Assign a 1-4 rating to each critical success factor to indicate ) 1= major weakness, 2=minor weakness, 3= minor strength, and 4= major strength

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