Of the many competitors Michelin has. which firm do you think worries Michelin most about? Prepare a competitive profile matrix (CPM) that includes Michelin and the rival firm you identified.
Solution -
Michelin is a tire company and was founded in the year 1889. It has a worldwide network and is well known for its value and quality. The brand is synonymous with the trust that it resonates with its customers. The major competition of Michelin is Goodyear Tire and Rubber Company. Let us evaluate both bases the competitive profile matrix -
| Critical Success Factors | Weights | Michelin | Good Year | ||
| Score | W.Score | Score | W.Score | ||
| Brand | 0.25 | 4 | 1 | 3 | 0.75 |
| Perceived Quality | 0.25 | 4 | 1 | 4 | 1 |
| Marketing | 0.1 | 3 | 0.3 | 4 | 0.4 |
| Product Range | 0,1 | 3 | 0.3 | 3 | 0.3 |
| Customer Service | 0.1 | 3 | 0.3 | 3 | 0.3 |
| Pricing | 0.1 | 3 | 0.3 | 3 | 0.3 |
| Valuation | 0.1 | 2 | 0.2 | 4 | 0.4 |
| Total | 1.00 | 3.4 | 3.45 | ||
The above matrix shows that Michelin and Goodyear are neck to neck but Good year scores high on marketing and valuation than Michelin which has a better brand image but is unable to position itself as effectively as Goodyear is able to do.
Of the many competitors Michelin has. which firm do you think worries Michelin most about? Prepare...