Competitive Profile Matrix (CPM)
The Competitive Profile Matrix (CPM) identifies the Starbucks’s major competitor which is Mc
Donald’s and Dunkin Donuts. It is a particular strength and weaknesses in relation to the
Starbuck’s strategic position. The critical success factors in a Competitive Profile Matrix include
both internal and external issues. Therefore, the ratings refer to the strengths and weakness
where, 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness.
The critical success factors in a Competitive Profile Matrix are not grouped into opportunities and
threats as they are in an EFE. In a Competitive Profile Matrix, the ratings and total weighted
scores for rival firms can be compared to the sample firm. This comparative analysis provides an
important internal strategic information. Avoid assigning the same rating to firms included in the
CPM analysis.
A table an analysis of Competitive Profile Matrix as shown below. In this table, the two most
important factors to being successful in the industry are “advertising” and “product quality”, as
indicated by weights of 0.20. If there were no weight column in this analysis, then each factor
would be equally important. Thus, having a weight column makes for a more robust analysis
because it enables analyst to assign higher and lower numbers to capture perceived or actual
levels of importance.
Starbucks
McDonalds
Dunkin Donuts
Critical Success
Factor
Weight
Rating
Score
Rating
Score
Rating
Score
Advertising
0.20
4
0.80
3
0.60
2
0.40
Market Penetration
0.05
4
0.20
3
0.15
2
0.10
Product Quality
0.20
4
0.80
2
0.40
3
0.60
Product Variety
0.10
2
0.20
4
0.40
3
0.30
Consumer Loyalty
0.10
3
0.30
4
0.40
2
0.20
Price Competitiveness
0.10
2
0.20
4
0.40
3
0.30
Market Share
0.05
4
0.20
2
0.10
3
0.15
well.
Financial Profit
0.10
3
0.30
4
0.40
2
0.20
Store Location
0.05
4
0.20
3
0.15
2
0.10
Management
0.05
4
0.20
3
0.15
2
0.10
1.00