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Competitive profile matrix is a very useful tool at the hands of firms to judge where they stand with respect to other competitors in the industry. It provides an analysis of strength and weaknesses of a firm in comparison to other firms in the industry. By doing so, it helps to highlight the areas where more improvements are required so as to gain an upper hand in the industry. The best fact about CPM is that it takes into consideration both the internal as well as external factors so as to provide exact ranking of the firm in the market with respect to the mavens. As understanding the attributes of CPM might be challenging for some, Competitive Profile Matrix (CPM) Assignment Help shall thrive to make it simpler and perceivable.
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Attributes of Competitive Profile Matrix
Different attributes of competitive profile matrix explained in Competitive Profile Matrix (CPM) Assignment Help are-
• Critical success factors: While preparing the matrix, certain major aspects are kept under this category. These are deciding factors and need utmost attention of the firm. When these factors are looked after, it provides a better CPM value. Such factors are decided upon after thorough analysis and considerations of internal as well as external environments. Product quality, profit margins and Research and development spending, cash reserves are a few of such critical success factors. It should be understood that these factors shall vary according to the nature of industry under consideration. For detailed account on attributes, refer Competitive Profile Matrix (CPM) Assignment Help.
• Weight: Weight is associated with the value and degree of importance given to each critical factor. This ranges from 0.0 to 1.0. 0.1 would mean a factor of low importance while 0.15 would be for a higher importance factor. The sum of all weights should be equal to 1. As a lot of factors are given weights and no single factor determines the fate of the firm, weights do not go as high as 0.8 for instance.
• Rating: Rating is given for the critical factors that are being considered for the firm. This provides an idea about how well the firm is doing in each field.It is based on a scale ranging from 1 to 4. Where 1 would signify a major weakness, 2 would signify minor weakness, 3 means minor strength and 4 would mean major strength. Benchmarking is easily done rather as it provides comparative analysis between industries. For better insights, go through Competitive Profile Matrix (CPM) Assignment Help.
• Score and total score:Score is obtained by multiplying the weight by rating for each critical factor. Each factor score is then added to reach the total score. The firm with highest score is then considered strongest and vice versa.
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