Extending The Competitive Profile Matrix Using Internal Factor Evaluation And External Factor Evaluation Matrix Concepts

Abstract

Internal Factor Evaluation and External Factor Evaluation matrices allow an organization to visualize their strengths, weaknesses, opportunities, and threats while a Competitive Profile Matrix utilizes critical success factors to allow an organization to compare itself to other competitors. The authors wondered if substituting basic internal strengths and weaknesses categories, and external opportunities and threats classifications for the conventional CSFs in a forced ranking method could extend the Competitive Profile Matrix to allow additional strategic understanding. The goal of extending the Competitive Profile Matrix using the forced ranking of important organizational factors when evaluating an organizations relative competitive position against major competitors was successfully realized. An External Competitive Profile Matrix (ECPM) and an Internal Competitive Profile Matrix (ICPM) better draw awareness to internal and external categories that need an organizations attention.

From Uncertainties to Successful Start Ups: A Data Analytic Approach to Predict Success in Technological Entrepreneurship

“…The results derived from the research state that the firm can be successful and have a favorable condition in future only if the opportunity has the right conditions and viable circumstances. The outcome of our model is aligned with the existing literature [9,27,69]. Thus, this opportunity evaluation model using EFE and IFE matrices to form an I-E matrix is able to correctly represent the scope of opportunity.…”

“…In the first case, the EFE matrix outputs 2.71, signifying some growth, as any value above 2.5 is considered as probability of success. Similarly, the IFE matrix outputs 3.27 which is accepted in the literature as indicating that the resource has a higher success potential and represents a viable opportunity [69,72]. However, in the second case, the evaluation results with EFE score as 1.48 and IFE score as 1.71, meaning that the opportunity is not a viable opportunity.…”

“…To find the strategic position using uncertainty factors, we use the EFE (external factor evaluation) and IFE (internal factor evaluation) matrix evaluation methods that have been extensively used in the literature to evaluate firm performance [13,[69][70][71][72][73][74][75]. EFE matrix is a strategic tool to analyse the external environment, while IFE matrix examines the internal environment [69,74].…”

“…EFE matrix is a strategic tool to analyse the external environment, while IFE matrix examines the internal environment [69,74]. Even though these tools are not widely used in the field of sustainable entrepreneurship, they are critical tools for evaluating the strength of an opportunity by prioritizing and ranking the key external and internal factors.…”

“…According to the matrix evaluation methods, a total score of 2.5 is an average score based on a 1-4 rating. In EFE, a total weighted score falls below 2.5 consider as weak while above 2.5 consider as strong in position [69,72]. If y-axis and x-axis values shown in the graph are between 1 and 2.5, this represents an external threat and internal weakness, respectively, while values between 2.5 and 4 indicate an opportunity and internal strength, respectively.…”