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    Competitive Profile Matrix (CPM)

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    LionelPinto
    The Competitive Profile Matrix (CPM) is a tool that compares a firm to its rivals by identifying their relative strengths and weaknesses in key critical success factors of an industry. The CPM assigns weights to factors and ratings to firms, then calculates scores to determine the firm with the highest total score and strongest competitive position. For example, a CPM analysis of Indian travel agencies MakeMyTrip, Yatra, and ClearTrip shows MakeMyTrip has the highest market share and scores highest overall due to strengths in marketing, packages, and user experience, while Yatra focuses on low prices.

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    Competitive Profile Matrix (CPM)

    Uploaded by

    LionelPinto
    164 views4 pages
    The Competitive Profile Matrix (CPM) is a tool that compares a firm to its rivals by identifying their relative strengths and weaknesses in key critical success factors of an industry. The CPM assigns weights to factors and ratings to firms, then calculates scores to determine the firm with the highest total score and strongest competitive position. For example, a CPM analysis of Indian travel agencies MakeMyTrip, Yatra, and ClearTrip shows MakeMyTrip has the highest market share and scores highest overall due to strengths in marketing, packages, and user experience, while Yatra focuses on low prices.

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    SM CPM

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    The Competitive Profile Matrix (CPM) is a tool that compares a firm to its rivals by identifying their relative strengths and weaknesses in key critical success factors of an industry. The CPM assigns weights to factors and ratings to firms, then calculates scores to determine the firm with the highest total score and strongest competitive position. For example, a CPM analysis of Indian travel agencies MakeMyTrip, Yatra, and ClearTrip shows MakeMyTrip has the highest market share and scores highest overall due to strengths in marketing, packages, and user experience, while Yatra focuses on low prices.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    164 views4 pages

    Competitive Profile Matrix (CPM)

    Uploaded by

    LionelPinto
    The Competitive Profile Matrix (CPM) is a tool that compares a firm to its rivals by identifying their relative strengths and weaknesses in key critical success factors of an industry. The CPM assigns weights to factors and ratings to firms, then calculates scores to determine the firm with the highest total score and strongest competitive position. For example, a CPM analysis of Indian travel agencies MakeMyTrip, Yatra, and ClearTrip shows MakeMyTrip has the highest market share and scores highest overall due to strengths in marketing, packages, and user experience, while Yatra focuses on low prices.

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    Competitive Profile Matrix ( CPM)

    • The Competitive Profile Matrix (CPM) is a tool that compares the firm
    and its rivals and reveals their relative strengths and weaknesses.
    • In order to better understand the external environment and the
    competition in a particular industry, firms often use CPM.
    • The profile 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
    Process Followed :
    o Critical success factors are the key areas that determine a company’s
    success in the industry.
    o Assign a weight ranging from 0.0 (low importance) to 1.0 (high importance)
    to each critical success factor. The weight indicates the importance of that
    factor in the company’s success. If you don’t assign weights, then all factors
    would be equally important.
    o The ratings in CPM refer to how well companies are doing in each area.
    They range from 4 to 1:
    o The score is the result of weight multiplied by rating. 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.
    o Usually this score is set through benchmarking .
    MakeMyTrip Yaatra ClearTrip

    Critical Success Factor Weight Rating Score Rating Score Rating Score

    Market Position 0.15  4 0.6  3   0.45    


    Packages and travel
    options 0.11   3 0.33  2  0.22     

    Marketing and Promotion 0.19  4 0.76  2  0.38     

    Pricing 0.20       4 0.80     


    User friendliness of online
    apps 0.12  3   0.36 2 0.24     

    Customer Service 0.14             


    • Make my trip ( 41 % ) of the market share after its merger with
    Goibibo and is the market leader of travel agencies in India
    • Yatra has 15% of marker share in India
    • MMT spends a lot on sales and promotion( 5 times more when
    compared to Yatra )- 44.5 M vs 9 M
    • Yatra’s mobile and web application though similar to MMT is lacking
    in the interface design and user friendliness of MMT.
    • Yatras prices are one of the lowest in the industry .They also offer
    lowest price guarantee . Book hotels in India with lowest price
    guarantee on Yatra and if you happen to find a price lower than ours,
    we give you not equal but five times the difference in form of User
    Money and eCash.

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