COMPETITIVE PROFILE MATRIX

Introduction2

Competitive advantage2

Competitive profile Matrix3

The purpose of the paper4

Literature review5

The concept5

The Anatomy of Competitive profile matrix7

Crucial success factors7

Rating7

Weight8

How it works8

The necessity of competitive profile matrix8

Critical review10

Ever changing environment10

Opinion11

Conclusion12

References14

Competitive profile Matrix

Introduction

Competitive advantage

The panorama of the corporate world has changed into a competitive platform, and therefore, it is mandatory for a firm to develop a sustainable competitive advantage to combat the competition, as well as, revive through the crises situation. Competition does not merely comprise of the situations that are critical to the organization in a running business, but also, to sustain the viability of the business for the future. The age of today is information age, and therefore, it is very much convenient for other businesses to acquire the information about how a product or service works, as well as, what strategies could be implemented to create a better product.

Competitive advantage is an extremely necessary facet, as of the scenario of the world today. In the corporate arena; it is not only mandatory for companies to survive, but also, to grow and succeed against new notions that are being introduced in the market every going day. The picture of the business world encompasses of increasing scientific inventions and innovation that alter the consumer trends for the markets, and therefore, the business have to alter the products every now and then. It is essential for the success and survival of the business to create and maintain a sustainable competitive advantage (David et al, 2009).

The context and definition of competitive advantage worry from time to time, however, it could be defined as “any advantage that a firm has over other competitors in the industry' that leads its towards greater sales revenues, as well as, profitability and a sound costumer basis. It is one of the most important concepts of strategic management; since it is the only choice the businesses are left with, in order to be successful and sustainable in the future. It is not merely considered to have an edge over the rivals, but also, to be able to maintain the individuality of the business for the future.

Successful companies build their competitive edge through immense strategic planning and analysis. Competitive edge is at the heart of strategic management of any business, and therefore, it is very essential for the business organizations to create a viable and sustainable edge over the competition. It is divided into two main types, either cost advantage over the competition, or the differentiation in some sort of the business (Capps & Glissmayer, 2012).

Competitive profile Matrix

However, it is essential for the strategic management department of any firm to assess the competitive strength of the competition against the competitive firms, so as to assess the current standings of the company and assess the future. It also enables the companies to plan for the future, and know the areas of lacking that could turn out to be the threats for them in the future.

The Competitive profile matrix is the strategic tool to assess the competition in its ...