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.