2.8. The competitive profile matrix(CPM)

2.8. The competitive profile matrix (CPM)

This tool identifies the major competitors and its particular strengths and weaknesses in relation to a sample firm´s position.

Procedure for development:

1. the critical success factors most representative market competitors in the industry are identified.

2. Assign a weight to each ponderante success factor in order to indicate the relative importance of that factor to the success of the industry.

0.0 = unimportant

1.0 = very important

NOTE : The amount must be equal to 1.

3. assigned to each of the competitors , as well as the company being studied , the weakness or strength of that signature to every key success factor.

1 = severe weakness

3 = less fortitude

2 = lower weakness

4 = Important fortitude

4. Multiply the weight assigned to each key factor for the corresponding classification given to each company.

5. Add the column for each company weighted results. The highest indicate the most dangerous competitor and less than weaker .

Our Competitive profile matrix

(1)We interview one student of each institute:

María Alejandra Sánchez: Ip Group

Laura Daniela Galindo: Fonsegar

Laura Natalia Rojas: Moli

(2)Then we ask them five questions about each item:

1. The institute where do you studied has social responsibility with the people, students or workers?

2. This institute bring to you a great educational quality?

3. This institute implementing technology to teach English?

4. The teacher who gave you classes were qualified and knew the subject? Besides, the classes that you took was prepared?

5. The cost of the course corresponds to the shape and tools implemented for your education?

6. The services provided by the institute are complete and satisfy your needs?

(3)Then they gave them a rating

1 = severe weakness

3 = less fortitude

2 = lower weakness

4 = Important fortitude

(4)Finally we do the competitive profile matrix and we could show that Fonsegar is the strongest competitor because, it has technological tools for learning and has extensive experience in the field, but we can compete with low cost and high quality, besides our foundation and we are committed to the social responsibility for that our target is the poor children.