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Create a Competitive Profile Matrix, an EFE Matrix, and an IFE Matrix for the company
Facebook. Write in APA format. Description and example of a Competitive Profile Matrix, EFE
Matrix, and IFE Matrix is below:
The Competitive Profile Matrix (CPM) identifies a firm’s major competitors and its particular
strengths and weaknesses in relation to a sample firm’s strategic position. The weights and total
weighted scores in both a CPM and an EFE have the same meaning. However, critical success
factors in a CPM include both internal and external issues; therefore, the ratings refer to
strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness,
and 1 = major weakness. The critical success factors in a CPM are not grouped into opportunities
and threats as they are in an EFE. In a CPM, the ratings and total weighted scores for rival firms
can be compared to the sample firm. This comparative analysis provides important internal
strategic information. Avoid assigning the same rating to firms included in your CPM analysis.
An Example Competitive Profile Matrix
Company 1 Company 2 Company 3
Critical Success Factors Weight Rating Score Rating Score Rating Score
Advertising 0.20 1 0.20 4 0.80 3 0.60
Product Quality 0.10 4 0.40 3 0.30 2 0.20
Price Competitiveness 0.10 3 0.30 2 0.20 1 0.10
Management 0.10 4 0.40 3 0.20 1 0.10
Financial Position 0.15 4 0.60 2 0.30 3 0.45
Customer Loyalty 0.10 4 0.40 3 0.30 2 0.20
Global Expansion 0.20 4 0.80 1 0.20 2 0.40
Market Share 0.05 1 0.05 4 0.20 3 0.15
Total 1.00 3.15 2.50 2.20
Note: The ratings values are as follows: 1 = major weakness, 2 = minor weakness, 3 = minor
strength, 4 = major strength. As indicated by the total weighted score of 2.20, Company 3 is
weakest overall. Only eight critical success factors are included for simplicity; in actuality,
however, this is too few.'
An External Factor Evaluation (EFE) Matrix allows strategists to summarize and evaluate
economic, social, cultural, demographic, environmental, political, governmental, legal,
technological, and competitive information, illustrated earlier in Figure 3-2 . The EFE Matrix can
be developed in five steps: