Assignment: Competitive Advantage
You are a marketing consultant to Tim’s Coffee Shoppe. A way for Tim’s Coffee Shoppe to determine the advantages (or
weaknesses) Tim’s has as compared to their competitors’ is through doing a Competitive Profile Matrix (CPM). When you
identify Tim’s key success factors, you can weigh them according to the strength/weakness compared to the competitors.
You are a marketing consultant to Tim’s Coffee Shoppe. A way for Tim’s Coffee Shoppe to determine the advantages (or
weaknesses) Tim’s has as compared to their competitors is through doing a Competitive Profile Matrix (CPM). When you
identify Tim’s key success factors, you can weigh them according to the strength/weakness as compared to the competitors.
You can set any weight you wish, but a simple one is:
1 – Major weakness
2 – Minor weakness
3 – Minor strength
4 – Major strength
Key success factors can be identified for the business. They can include things such as the quality, location, brand
recognition, profitability, product, the staff, etc. In the matrix, you will list these factors and rate the strength of each one in
Tim’s business as well as his primary competitors. See the example below. Each coffee shop was ranked first, second or
third in each of the factors that may or may not affect their competitive advantage.
Factor Tim’s Coffee Shoppe Competitor 1 (Enter Name) Competitor 2 (Enter Name)
Score Comments Score Comments Score Comments
Quality 1 2 3
Location 2 1 3
Brand Recognition 3 1 2
Profitability 2 3 1
Product 1 2 3
Staff 1 3 2
Total
Now using competitors researched 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
You can examine the above data in several ways. While the total score for Tim’s business maybe is higher than his major
competitors, Tim’s may have a lower score in another area which means they are not as competitive in those areas. Some of
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these areas might allow their competitors to create advantages and their customers or potential customers may choose their
competitor over Tim’s business. For example, if their products are closely rated but their competitor has a higher score on
staff friendliness, might their customers start frequenting their competitor’s business? What would you recommend to
increase Tim’s score in this area?
For this Assignment, spend some time looking around Tim’s Coffee Shoppe. Look either online or visit two competitors in
your area that Tim may compete against and familiarize yourself with their business. You may even be a frequent customer
of a coffee shop and already be aware of how you might rate their strengths against Tim’s.
Fill in the matrix above with your results from your research. Feel free to change or add any of the other factors listed.
this is the link to Tims Coffee shoppe:
http://extmedia.kaplan.edu/business/Media/AB299/Tims_Coffee_Shop/index.html

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