weaknesses) Tim’ s has as compared to their competitors is through doing aCompetitive Profile Matrix( CPM). When you identify Tim’ s key success factors, you can weigh them according to the strength / weakness as compared to the competitors. You can set any weight you wish, but a simple one is:
1 – Major weakness 2 – Minor weakness 3 – Minor strength 4 – Major strength
Key success factors can be identified for the business. They can include things such as the quality, location, brand recognition, profitability, product, the staff, etc. In the matrix, you will list these factors and rate the strength of each one in Tim’ s business as well as his primary competitors. See the example below. Each coffee shop was ranked first, second or third in each of the factors that may or may not affect their competitive advantage.
Now using competitors researched on the Internet or in your local area, create a CPM for Tim.
Other factors you may wish to consider include: Price Selection Service Reliability Expertise Company Reputation Social Responsibility