Competitive Profile Matrix of Godrej and whirlpool Refrigerators

Topbullets.comCompetitive profile matrix is an essential strategic management tool to compare the firm with the major players of the industry. Competitive profile matrixes show the clear picture to the firm about their strong points and weak points relative to their competitors. The CPM score is measured on basis of critical success factors, each factor is measured in same scale mean the weight remain same for every firm only rating varies. The best thing about CPM that it includes your firm and also facilitates to add other competitors make easier the comparative analysis.

In case of refrigerator industry, technology and product innovation plays the most important role because they attract consumers to our wide portfolio of brands and also offers a sustainable competitive advantage, so they have been given high weights of 0.25 and 0.20 respectively. Refrigerator is such a product on which the consumers around the world can depend on to meet their daily needs. The commitment to quality begins in the concept stages and continues throughout the lifetime of the appliance. The result of these efforts is a sustainable and competitive advantage for the company. To produce products that meet the company’s high-quality standards, there should be a constant focus on seeking out new and unique ways to improve the function, performance and sustainability of the products, hence quality is also given high weightage of 0.20. Rest economies of scale, brand loyalty and distribution also considerable factors for analysis but somewhat less relevant to those mentioned above, so they have been given comparatively low weights of 0.10, 0.10 and 0.15 respectively.

 

 

Godrej

Whirlpool

Critical Success Factor

Weight

Rating

Weighted Score

Rating

Weighted Score

Technology

 

0.25

4

1.00

4

1.00

Economic of
scale

 

0.10

3

0.30

3

0.30

Product
innovation

 

0.20

3

0.60

4

0.80

Quality

 

0.20

3

0.60

4

0.80

Distribution

 

0.15

3

0.45

4

0.60

Brand Image

 

0.10

3

0.30

4

0.40

Total

 

 

 

3.25

 

3.85

From the Comparative Profile Matrix we can see that Total Weighted Score for Godrej is 3.25 where for Whirlpool it is 3.85. The company total weighted score higher than 2.5 is consider as strong in position. The other dimension of CPM is the firm with higher total weighted score considered as the winner among the competitors. But in Indian market we can say that Whirlpool is much stronger than Godrej.

In this factor analysis we have studied the most influencing and import factors of Godrej appliances and Whirlpool. We did a comparative advantage analysis of Godrej over Whirlpool. For that we have recognized following factors. The most important factor identifies is technology.

In case of technology both Godrej and Whirlpool are doing innovation. Whirlpool has strong brand image and quality.

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Deepesh Singh

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