COMPETITIVE PROFILE MATRIX

Competitive Profile Matrix is a powerful strategic analysis tool. CPM allows business owners,
stockholders and other interested parties to see the strengths and weaknesses of all major
competitors in an industry on a single page. This helps visualize and communicate the
competitive landscape.

CPM for PHILIPS Philips Electric Khyber Lamps Samsung

Industries Pakistan
Critical Weight Rating Score Rating Score Rating Score
Success
Factor
Innovation 0.10 4 0.4 1 0.1 4 0.4
Brand 0.10 4 0.4 2 0.2 4 0.4
Reputation
Product 0.07 4 0.28 2 0.14 2 0.14
Range
Market Share 0.13 2 0.26 1 0.13 1 0.13
Low Cost 0.07 1 0.7 3 0.21 1 0.07
Structure
Customer 0.07 3 0.21 2 0.14 3 0.21
Retention
Superior IT 0.10 4 0.4 1 0.10 4 0.4
Capabilities
Strong 0.09 4 0.36 1 0.09 4 0.4
Online
Presence
Successful 0.08 1 0.08 1 0.08 3 0.24
Promotion
Financial 0.10 4 0.4 2 0.2 4 0.4
Position
Product 0.09 4 0.36 2 0.18 4 0.36
Quality
Total 1.00 4 3.85 4 1.57 4 3.15

Philips deals in different categories in Pakistan including lighting, electric appliances, home care
and medical equipment. While serving a big market with such diverse products range there is no
direct competitor of Philips in Pakistan but there are other corporations in Pakistan including
Khyber Lamps Pakistan that is behind Philips in lighting marketing in Pakistan with China made
lighting products exported by different small businesses and distributing all over the country.
In home care Philips also offers many products. There are many other companies dealing in
home care products. Samsung is the world leader in television and LCDs and also leads market
in Pakistan along with Sony and some other brands. In the CPM we analyzed and compared
Philips with two different companies from different perspective as they are competitors to
different domains of Philips. The CPM of Philips Electric Industries is 3.85 which is greater than
the CPM of Samsung which is 3.15 and Khyber Lamps Pakistan 1.57 which showed Philips
Electric Industries have great competitive advantage in the market. The Philips Electric
Industries with the highest composite score is the strongest player in the competitive
landscape. They are the strongest player, they must work hard to retain this competitive
advantage.

EXTERNAL FACTOR EVALUATION (EFE) MATRIX

External Factor Evaluation is a strategy tool used to examine company’s external environment
and to identify the available opportunities and threats."

List key external factors (10-20)

 Opportunities & threats

2. Assign weight to each (0 to 1.0)

Sum of all weights = 1.0

3. Assign 1-4 rating to each factor

• Firm’s current strategies response to the factor

4. Multiply each factor’s weight by its rating

• Produces a weighted score

5. Sum the weighted scores for each

 Determines the total weighted score for the organization.

 Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average =
2.5
Key External Weight Rating Score
Factors
Opportunities

Cheap labor 0.10 1 0.1

High Demand of 0.15 3 0.45

Energy Saving
Products
Growing and Aging 0.10 2 0.2
Population
Green Push 0.05 2 0.1

Economies of Scale 0.10 1 0.1

Threats

Fluctuated Economic 0.15 3 0.45

Conditions in Pakistan
More Affordable 0.10 2 0.2
Alternatives
Security and Law & 0.10 3 0.3
Order Situation
Low Awareness in 0.10 2 0.2
general Public about
Quality Products
Unskilled Workforce 0.05 1 0.05

Total 1.00 2.15