Competitive analysis matrix - Competitive profile matrix is essential tool used

in strategic management process, it contain all the important critical success factors of industry. Success factor can vary form industry to industry, every industry consider different success factor, all the companies in CPM are measured on same scale by considering the same success factor. In IFE we only consider internal strengths and weakness and EFE constraint is to consider only internal factor from PLEST (Political,legal,environmental, social and technological) but Competitive profile matrix is not bound by any constraint, all the success depends upon the importance it can be external or internal doesnt matter.

Differences between EFE and CPM Following are some of the important differences between EFE ( external factor evaluation) and CPM ( competitive profile matrix) 1. In competitive profile matrix, critical success factors include both internal and external issues. 2. In external factor evaluation, critical success factors are grouped into opportunities and threats where as such grouping does not exist in competitive profile matrix. 3.In external factor evaluation , total weighted scores of a firm can not be compared to the total weighted scores of rival firms where as such comparison is possible in competitive profile matrix .

1.7 McDonalds Competitive analysis matrix

The Competitive profile matrix identifies the firms major competitors and their particular strength and weakness. Using this CPM matrix the position of McDonalds is assessed. 1.7.1 Key factors Analysis

Key factors
Critical success factors Advertising Product Quality Price Weight

McDonalds Rating Score

KFC
Rating Score

Burger king
Rating Score

20 10 10

1 4 3

20 40 30

4 4 3

80 40 30

3 3 4

60 30 40

competitiven ess Management Financial Position Customer Loyalty Global Expansion Market share Total 10 15 10 20 05 100 4 4 4 4 1 40 60 40 60 05 315 3 3 4 2 4 30 45 40 40 20 325 3 3 2 2 3 30 45 20 40 15 280

NOTE: Rating value are as follows; 1= major weakness, 2= minor weakness, 3= minor strength, 4= major strength, As listed above McDonalds deals the second position in critical factors.