Small Business Terms: What Is a Competitive Matrix?

By QuickBooks Canada Team

0 min read

A competitive matrix is a market research technique that enables businesses to critically compare their products, services, or position in the market with known competitors. It is created as a table, with the key features and benefits listed as evaluation factors in the left column and the names of the companies to be compared listed across the top. A numerical ranking is assigned for each company in each factor, creating an instant analysis of the strengths and weaknesses of each company in the various factors. For a deeper analysis, each factor can be assigned a weighting based on its importance as a competitive feature or benefit.

The purpose of a competitive matrix is to gauge a company’s competitiveness at any given time. The analysis helps management identify strengths and weaknesses, along with opportunities to improve the company’s products or services for greater differentiation.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Have You Planned for Buying Out Your Small Business Equity Partner?

When starting a new business with an equity partner, it is easy…

Read more

How to Handle a Cash Flow Shortage

Knowing how to handle a cash flow shortage can be crucial to…

Read more