Competitive Analysis The Competitive Profile Matrix (CPM) is a tool that compares the firm and its rivals and reveals their relative strengths and weaknesses (Competitive Profile Matrix, 2013, October 29). These factors are influenced by external and internal challenges. The illustrated CPM below compares Domino’s Pizza with two of its top competitors, Pizza Hut and Papa John’s. The results of the CPM give Domino’s Pizza a 3.3, which is above average in its respective industry. The firm also has high market share. There is an opportunity to improve areas of product expansion and effective advertising. A strong social media presence will also help increase brand loyalty and give the firm the competitive advantage.
Competitive Profile Matrix
Rating Scale: poor = 1 below average= 2 average=3 above average=4
CPM Table Dominos Pizza Pizza Hut Papa John’s
Critical Success Factor Weight Rating Score Rating Score Rating Score
Advertising 0.10 4 0.40 4 0.40 3 0.30
Range of Products 0.10 4 0.40 4 0.40 3 0.30
Product Quality 0.10 4 0.40 4 0.40 3 0.30
Competitiveness 0.10 3 0.30 4 0.40 3 0.30
Financial 0.10 3 0.30 3 0.30 3 0.30
Expansion 0.10 3 0.30 3 0.30 3 0.30
Market Share 0.15 4 0.40 4 0.40 2 0.20
Price 0.15 4 0.40 3 0.30 4 0.40
Brand Loyalty 0.10 4 0.40 3 0.30 3 0.30
Total 1.00 3.3 3.2 2.7
External Factor Evaluation The External Factor Evaluation (EFE) matrix is a tool that helps management visualize and prioritize opportunities and threats that the business may
The opportunities that afford us are enormous! This is the first product on the market and since this is a technology society, it will create excitement in our culture. The purpose of this product is to provide a more convenient product for parents to help in transporting the child from place to place in a safe manner. The car can be operated while the parent is driving the by the car seat remote control. The
Chatter Box is a Cell phone Manufacturer, which has been in business since 1990. Our company has stayed in business so long because of the ability to provide customers with reliable and durable products. We have not had many issues keeping up with the advances in technology; however, recent research has shown us that the competition for cell phone is growing every day. We have also found through extensive research that more customers are moving away from computers and laptops and moving toward wireless, easier to carry tablets. Therefore, Chatter Box has come up our own version of the tablet; we expect our product to do very well
Exhibits 6, 8, 9, and 10 provide a great deal of information to TruEarth Pizza, including several necessary areas of continuing product development. Creating more appealing varieties and finding a way to increase the convenience factor, for example, would be excellent ways to improve customer response to the product. There are other, more distressing problems that suggest the entire model might be flawed and ultimately unprofitable: two of the most substantial dislikes of the
The threat of new entrants refers to the threat posed by new competitors within an industry. If it is easy for new firms to enter the industry barriers to entry are low and the threat of new entrants is high. A profitable industry attracts more competitors. Economies of scale, learning curve effects and other macro factors impact the nature of an industry 's
Papa John’s competitive strategy primarily follows Porter’s unique or unusual product of services. Papa John’s executives understands their product is unique and people chose them over other pizzerias because of this. In Porter’s typology he suggest that managers do the following: focus on identifiable subsets of the industry in which it operates or serve the entire market as a whole. Managers should also determine if the business should compete by competitive prices or price it accordingly to the unique craft they serve ( Parnell, 2008). With Papa John’s reputation of better ingredients, better pizza Papa John’s has set the tone for consumers to expect to pay more than they would with their direct competitors.
Compare and contrast the market-based approach and the resource-based view as approaches to competitive strategy. To what extent are they rival or complementary views?
Internal Factor Evaluation (IFE) is a strategic tool used to perform internal audits of any firm. It is used to perform internal analysis of the various functional areas of the business. The internal aspect is divided into two segments, the strengths and weaknesses. Strengths are the attributes of the company which are utilized to overcome the
Before we can talk about the Strategy Hudson Bay uses we must first answer the the question of what a Corporate and Business Strategy is and how The Bay inaugurates this into their company;
An External Factor Evaluation (EFE) allows strategies to summaries and evaluate economic, social, and cultural factor through the uses of a numerical rating. In our case we evaluated the EFE of Estee Lauder. By numerically scaling Estee Lauder’s opportunities and threats we analyzed the importance of the programs they have to offer. First assigning each factor a weight of importance
Option 2: maintain the present price, be content with the current market share, and use the lower-cost edge to earn higher profit margin on each unit sold 4. Concept & Connections 5.1, How Wal-Mart Managed Its Value Chain to Achieve a Huge Low-Cost advantage over Rival Supermarket Chains, describes Wal-Mart’s strategy for out-managing its rivals in efficiently performing various value chain activities to gain a lowcost leadership. A. Achieving Low-Cost Advantage 1. A low cost edge over rivals is best accomplished in two ways: a. performing essential value chain activities more cost-effectively than rivals, and
In growing the company, CanGo prepares to expand into online gaming. To assist in this endeavor, we present By Design’s findings concerning the competitive environment of online gaming. To begin with, there are many impressive competitors in the online gaming industry. The following tables show the top 25 gaming companies in 2010 along with the fastest growing ones (Van Kooten, 2010).
Michael E. Porter, associate professor published the article titled “How Competitive Forces shape Strategy” in Harvard Business Review in 1979. This article is retitled as “The Five Competitive Forces That Shape Strategy” and published in Harvard Business Review in 2008. Michael E. Porter developed the model of Five Competitive Forces which is defined as “Competitive Strategy – Techniques for Analyzing Industries and Competitors”. It has become a main device for analyzing an organizations structure in strategic practices.
Key External Factors Opportunities Overall Market Size Increasing Annual Market Growth Rate Low Technological Requirement Threats High Competitive Intensity High Inflationary Vulnerability High Customer Demand Environment Impact Social impact TOTAL 0.30 0.15 0.20 0.05 0.05 1.00 3 2 3 3 2 0.9 0.3 0.6 0.15 0.10 2.80 0.05 0.10 0.10 3 3 3 0.15 0.30 0.30 Weight Rating Weighted Score
The three generic strategies were identified by Porter (1985), who argues that in order to sustain
Fast, user-friendly online reservation system by facilitating e-ticketing and reducing staffing requirements at telephone reservation centers and airport counters. (Kuzmicki, 2009)