Competitor Profile Matrix (CPM)
What is a Competitor Profile Matrix (CPM)?
A Competitor Profile Matrix (CPM) is a tool used to create a strategic competitive advantage by analyzing the strengths and weaknesses of competitors in relation to a company. The CPM can be used to identify which competitors are most important and how best to compete against them. Through the analysis of Critical Success Factors, the CPM can help businesses understand how their capabilities compare with those of their rivals, and what strategies they should use to gain an advantage in the market. Ultimately, the CPM provides invaluable data that can be used to inform strategic decision-making and help companies develop competitive strategies that will give them an edge over their competition.
- SWOT Analysis - Another strategic tool used to evaluate a company's Strengths, Weaknesses, Opportunities, and Threats, often complementary to CPM.
- Benchmarking - A process that involves comparing one's own company metrics and performance against those of competitors, closely related to the goals of CPM.
- Competitive Advantage - The ultimate goal of analyzing a CPM is often to identify areas where a company has or can create a competitive advantage.
- Market Analysis - A broader examination of market conditions and competitors, within which CPM can be a useful tool.
- Business Strategy - The overarching plan under which CPM might be used to gain insights for strategic decision-making.
- Business Intelligence - The umbrella under which various analytical tools, including CPM, are used to gather actionable insights.
- Marketing Mix 4P's 5P's - The set of controllable tactical marketing tools (Product, Price, Place, and Promotion) that can be analyzed and compared using CPM.
- Value Chain Analysis - Another strategic tool used to analyze internal business activities to understand their value and cost, could be used in tandem with CPM for a comprehensive view.
- Balanced Scorecard - A performance metric used in strategic management to identify and improve various internal functions, sometimes used in conjunction with CPM for a more holistic view.