MGT603 Strategic Management Assignment No 01 Fall 2019 Solution & Discussion
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Strategic Management (MGT603)
Topic: Competitive Profile Matrix Due Date: November 22, 2019
Objective of the Assignment: To familiarize students about the application and
calculation of Competitive Profile Matrix.
Learning Outcomes: After attempting the assignment students will be able to know how
to calculate and use CPM to address competitive environment of a company.
Alpha Centauri is a leading FMCG company having wide market share in the southern region of
Pakistan. It initially started its operations as a small scale partnership and now has grown into a
major market leader in its business category due to its strong product portfolio, brand image,
effective advertising and customer loyalty programs. The uplift of economy and the increase of
disposable income have boosted the business sentiments and new entrants are venturing into the
business and existing players are planning a wider push to capture markets. Rapid advancement
of technology and e-commerce is opening up yet another battleground of competition.
The Alpha Centauri has also started to feel the heat of intense competition, as rival firms are
snatching market share and establishing their foothold in the market. As a natural response to this
threat the company should defend and further enhance their market share. For this purpose the
company has hired a top Strategic Management Consultancy firm to develop Competitive Profile
Matrix for the industry to better understand the company position in relation to its competitors.
In this regard, consultancy firm has developed the following matrix for the company to gauge
current competitive environment. CEO of the company has directed you to further analyze the
available data to figure out the important things for taking decision about the position of the
company in the market. The consultancy firm has provided the following data for analysis.
Table 1: Competitive Profile Matrix (Ratings 1 – Low, 4 - High)
Critical Success Factors Weight
Centauri Bright Co.
Advertising 0.06 4 3 4
Brand Image 0.07 4 2 3
Customer Loyalty 0.05 4 2 3
Market Share 0.11 4 3 3
Economies of Scale 0.12 4 1 1
Planned Capacity Expansion 0.10 1 4 4
Price Competition 0.07 2 3 4
E-Commerce 0.12 1 4 4
Distribution 0.11 2 3 3
Strategic Supplier Partnership 0.04 4 3 4
Variety of Products 0.07 2 4 4
Financial Position 0.08 3 4 3
Being a Financial manager of the Alpha Centauri, you are required to prepare the following things for
the CEO to take a decision regarding its competitive environment.
1. Calculate CPM score for each company (3 Marks)
2. Based on your calculations Identify two major strong points and two major weak points of the
company Alpha Centauri. (2 Marks)
3. Assume that after your recommendations company Alpha Centauri has addressed its two weak
points and is confident to do well in future by working on its weak points.
a. Now re calculate the CPM score of company Alpha Centauri after assigning the high rating (4) to
weak points identified in requirement 2 and comment on usefulness of CPM. (1+4 Marks)