STRATEGIC MANAGEMENT

Assignment No. 2

Submitted By:
Name: Gourab Roy,
ID: 19PMHS010 Dept. of MHSS, MBA, 3rd Semester NIT Agartala
CPM – Competitive Profile Matrix

  Yahoo Google Microsoft

Ratin Weighte Ratin Weighte Ratin Weighted
Critical Success Factors Weight g d Score g d Score g Score
Advertising 0.10 3 0.30 4 0.40 1 0.10
Service / Product Quality 0.10 3 0.30 4 0.40 2 0.20
Price Competitiveness 0.07 3 0.21 2 0.14 1 0.07
Management 0.06 2 0.12 4 0.24 3 0.18
Financial Position 0.09 2 0.18 3 0.27 4 0.36
Customer Loyalty 0.10 3 0.30 4 0.40 2 0.20
Product Lines 0.08 3 0.24 4 0.32 2 0.16
Market Share 0.10 3 0.30 4 0.40 2 0.20
Customer Service 0.07 3 0.21 4 0.28 2 0.14
Technology 0.10 3 0.30 4 0.40 2 0.20
Employees 0.05 3 0.15 2 0.10 1 0.05
Global Expansion 0.08 3 0.24 4 0.32 2 0.16
Total 1.00   2.85   3.67   2.02

Since Google weighted score is high that indicates Google is performing well than
Yahoo and Microsoft.

Opportunities

1. 1.1 billion Internet users around the world as of 2006 and it is still growing
2. Internet advertising revenues in the U.S. remains strong, topping $23 billion
in 2008
3. Consumers are spending more of their time online
4. New business strategies such as bundling Internet access with voice and
video services are increasing
5. Innovativeness in technology is the driving force in Internet-based
businesses
 6. Many businesses overseas are finding advertising on Internet less expensive
and more responsive
7. Countries such as China and India have stronger economic status and
accordingly, the companies are able to spend more advertising dollars via
Internet

Threats

1. Due to weak economic conditions, Internet related businesses also have

suffered
2. In 2009, a number of Internet content and advertising companies reported
disappointing financial results and lowered their forward financial outlooks
3. Low entry barrier makes the viability of existing Internet based businesses
difficult
4. Changes in legislative requirements concerning technology sharing, patent
rights and information security could increase future expenses and lower
profitability
5. Constant technology changes causes difficulty to be up-to-date all the time
6. Consolidations among Internet-based providers could make the
competition to be strong.

External Factor Evaluation (EFE) Matrix

Key External Factors Weight Rating Weighted

Score

Opportunities      

1. 1.1 billion Internet users around the world as of 2006 0.1 4 0.4
and it is still growing
2. Internet advertising revenues in the U.S. remains 0.08 3 0.24
strong, topping $23 billion in 2008
0.08 3 0.24
3. Consumers are spending more of their time online
4. New business strategies such as bundling Internet 0.09 2 0.18
access with voice and video services are increasing
5. Innovativeness in technology is the driving force in 0.07 2 0.14
Internet-based businesses
 6. Many businesses overseas are finding advertising on 0.09 3 0.27
Internet less expensive and more responsive
7. Countries such as China and India have stronger 0.07 2 0.14
economic status and accordingly, the companies are
able to spend more advertising dollars via Internet
Threats  
1. Due to weak economic conditions, Internet related 0.09 3 0.27
businesses also have suffered
2. In 2009, a number of Internet content and 0.07 2 0.14
advertising companies reported disappointing
financial results and lowered their forward financial
outlooks
3. Low entry barrier makes the viability of existing 0.06 2 0.12
Internet based businesses difficult
4. Changes in legislative requirements concerning 0.07 3 0.21
technology sharing, patent rights and information
security could increase future expenses and lower
profitability
5. Constant technology changes causes difficulty to be 0.08 2 0.16
up-to-date all the time
6. Consolidations among Internet-based providers 0.05 2 0.1
could make the competition to be strong
Total 1.00   2.61

NOTE:
The Ratings are assigned in the range between 1-4 where
 1 indicates response is poor.
 2 indicates response is average.
 3 indicates response is above average.
 4 indicates response is superior.