Unit 3 Assignment Part 2
Determining the competitive advantage is critical for company success.
Assignment: Competitive Advantage
You are a marketing consultant to . A way for Tims Coffee Shoppe to determine the advantages (or weaknesses) Tims has compared to its competitors is through doing a competitive profile matrix (CPM). When you identify Tims key success factors, you can weigh them according to their strength/weakness compared to the competitors.
Additional Resource:
U.S. Small Business Administration (n.d.) . https://www.sba.gov/business-guide
Checklist:
Optional Step 1: Do a partial SWOT analysis by concentrating on the internal strengths and weaknesses of Tims (based on your practice in the learning activity in this unit) versus what would be Tims competition if Tims was located in your nearest town.
Step 2: Identify Tims key success factors, weigh them according to their strength/weakness as compared to the competitors. You can set any weight you wish, but a simple one is provided.
Use the
Using competitors you research 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
Appearance
Credit Policies
Advertising
Key success factors can be identified for the business. They can include things such as the quality, location, brand recognition, profitability, product, staff, etc. In the matrix, you will list these factors and rate the strength of each one in Tims business as well as his primary competitors. Each competing coffee shop should be ranked first, second, or third in each of the factors that may or may not affect their competitive advantage.
You can examine the data in several ways. While the total score for Tims business may be higher than his major competitors scores, Tims may have lower scores in some areas, which means Tims Coffee Shoppe is not as competitive in those areas. Some of these areas might allow the competitors to create advantages, and their customers or potential customers may choose a competitor over Tims business. For example, if Tims products are rated closely to a competitors, but the competitor has a higher score on staff friendliness, might customers start frequenting the competitors business? What would you recommend to increase Tims score in this area?
For this assignment, spend some time looking around Tims Coffee Shoppe. Either search online or visit two competitors in your area that Tims may compete against and familiarize yourself with those businesses. You may even be a frequent customer of a coffee shop and already be aware of how you might rate their strengths against Tims.
