Ontwerpmatrix (2023)

FAQs

How does a competitive matrix help determine a competitive advantage for a business? ›

Competitive matrices are used to facilitate the process of comparing your business with other industry competitors. They help you take advantage of strengths and opportunities, while identifying weaknesses and threats before they become detrimental.

The score is the result of weight multiplied by rating. Each company receives a score on each factor. Total score is simply the sum of all individual score for the company. The firm that receives the highest total score is relatively stronger than its competitors.

Competitive positioning matrix

If you're analyzing price and quality, you'll place low price and low quality on the lower left, and high price and high quality on the upper right. The other two quadrants will be low price and high quality, and high price and low quality.

To measure your competitive advantage, you need to use metrics and benchmarks that reflect your goals and performance. For example, you can use market share, customer satisfaction, retention, loyalty, profitability or growth as indicators of your competitive position.

A competitive matrix is an analysis tool that helps you establish your company's competitive advantage. It provides an easy-to-read portrait of your competitive landscape and your position in the marketplace. The matrix can be just a simple chart.

However, critical success factors in a CPM include both internal and external issues; therefore, the ratings refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness.

The matrix identifies a firm's key competitors and compares them using industry's critical success factors. The analysis also reveals company's relative strengths and weaknesses against its competitors, so a company would know, which areas it should improve and, which areas to protect.

The average weighted score for CPM matrix is 2.5 any company total weighted score fall below 2.5 consider as weak. The company total weighted score higher then 2.5 is consider as strong in position. The other dimension of CPM is the firm with higher total weighted score considered as the winner among the competitors.

How to analyze CPM matrix? ›

The Competitive Profile Matrix

The first step is to draw up a list of critical success factors in your industry. These might include pricing, market share, brand reputation, a strong online presence, customer loyalty and a wide range of products. The exact list will vary depending on your industry, Marketing91 says.

Scoring competitors is often subjective. Once you have finished scoring every competitor for every critical success factor, you need to multiply the weight of each attribute by the score given to each competitor in the CPM. The result of this calculation will give you the weighted score for each competitor.

The three main types of competitive pricing are: Low price - When you set the prices lower than your competitors. High price - When you set the prices higher than your competitors. Matched price - When you align your prices with your competitors.

You take the price of your product, divide it by the average competitor market price, and multiply that by 100. You should have one of these three results. If it is over 100, that means your product has a higher price than your competitors. If it is 100, that means your product has the same price as your competitors.

The purpose of having a competitive advantage is to distinguish a company from its competitors by offering something different and of superior value to its customers. Competitive advantage also means the business can outperform its competition in the market and make a higher profit.

A competitive advantage is what sets a company apart from its competitors, in the eyes of its consumers. These advantages allow a company to achieve and maintain superior margins, a better growth profile, or greater loyalty among current customers.