“ Competitive Profile Matrix

(CPM) Of Bharti Axa (General

Insurance)
 We are doing competitive analysis of Bharti axa with other competitors in the market on
the basis of critical success factors used by bharti axa general insurance with other
competitors of general insurance in the market.

 Competitive Profile Matrix (CPM) is used to compare the competitors of your company
with other competitors in the market based on critical success factors as a key rating
provided by each company in the market.

 As in today's scenario, CPM matrix is giving tough competition towards other

competitors in market so Bharti axa general insurance is giving to other competitors of
general insurance like reliance general insurance, Bajaj Allianz general insurance, Aditya
Birla general insurance, SBI general insurance etc.

 Adding the weighted Score for each attribute of a particular competitor will give the
composite score of the competitor of Bharti Axa General Insurance in the Market.
 Before producing CPM matrix you have to identify the attributes that matter in the
industry.

 To understand the external environment and its competition of competitors of insurance

sector in the market and the competition of the particular industry firm uses CPM matrix
to increase the competitors other than competitors ratings provided in the market.

 This matrix identifies the firms key competitors and compares them using industry or
ratings of critical success factors.

 This analysis reveals the company's relative strengths and weakness against its
competitors so a company would know about which areas it should improve and which
areas would be protected.

 The Competitive Profile Matrix (CPM) is a tool to compare the firm matrix with matrix
against its rivals in the market in order to reveals their relative strengths and weakness.

 The Score is the result of weight multiplied by the rating given by the company. Each
company receives a score on each factor. A total score is simply the sum of all individual
score for the company. The firm that receives the highest total score is relatively stronger
than its competitors.
 Each Critical Success factor should be assigned a weight ranging from 0 to 1. The
number indicates how important the factor is in succeeding in the industry. If there is no
weight assigned, all factors would be equally important which an impossible scenario in
the real world. The sum of all the weights must be equal to 1.

 The rating in the CPM Matrix refers to how well the companies are doing their operations
in each of the area assigned in the matrix.

 The ratings of CPM refer to how well companies are doing in each area. Ratings, as well
as weights, are assigned subjectively to each company but the process can be done easier
through benchmarking. Benchmarking reveals how all companies are doing compared to
each other or the industry's average. Just remember that firms can be assigned equal
ratings for the same factor.

 The Competitive Profile Matrix (CPM) is a tool that compares the firm and its rivals and
reveals their relative strengths and weaknesses.
 Critical Success Factors (CRF) is the key areas which must be performed at the highest
possible level of excellence if organizations want to succeed in a particular industry.
They vary between different industries or even strategic groups and include both internal
and external factors.

 To better understand the external environment and the competition in a particular

industry, firms often use CPM. The matrix identifies a firm's key competitors and
compares them using industry's critical success factors. The analysis also reveals a
company's relative strengths and weaknesses against its competitors, so a company would
know, which areas it should improve and, which areas to protect.

 Competitive Profile Matrix (CPM) is a powerful strategic analysis tool. CPM matrix
allows business holders, stockholders and other interested parties to see the strength and
weakness of all major competitors in an industry on a single page. This helps visualize
and communicate the competitive landscape.

 Adding the weighted score for each attribute of a particular competitor will give you the
composite score of that company. The competitor with the highest composite score is the
strongest player in the competitive landscape. If you are the strongest player you must
work hard to retain a competitive advantage.
 Before you can produce the CPM, you need to identify the attributes that matter in the
industry.

 In most industries, competitors tend to have distinct strengths and weaknesses. While one
particular player might have the lowest manufacturing costs, another could have the most
recognized brand name. Yet another competitor could have the tastiest or most durable
product, for example. CPM not only helps you place all of these on a single page but also
distil a vast amount of data into a single numeric score. As a result, you can rank
companies in terms of the "total package" they bring to the table. This allows a manager
or business owner to identify the strongest competitors as well as the areas where she
most needs to improve.

 Next, each company must be assigned a score. You are free to select any scale for this
exercise. However, five- or ten-point scales are common since they are easy to work
with.

 After finishing the scoring of each competitor for every attribute in the matrix, you must
multiply the weight of each attribute with the score assigned to each competitor. This
comprises the weighted scores.
“ CPM Table of Bharti AXA General Insurance

CPM TABLE
Bajaj Allianz Bharti Axa Reliance
(General ( General ( General
Insurance) Insurance) Insurance)
Critical Weight Rating Score Rating Score Rating Score
Success
Factors
Brand 0.2 1 0.2 4 0.8 3 0.6
Reputati
on
Range 0.05 1 0.05 4 0.2 2 0.1
Of
Products
Market 0.2 4 0.8 2 0.4 3 0.6
Share
Low 0.15 1 0.15 3 0.45 4 0.6
Cost
Structure
Variety 0.05 3 0.15 3 0.15 3 0.15
Of
Distributi
on
Channels
Superior 0.05 1 0.05 2 0.1 4 0.2
IT
Capabilit
ies
Strong 0.15 1 0.15 2 0.3 4 0.6
Online
Presence
Successf 0.15 3 0.45 3 0.45 3 0.45
 ul
Promotio
ns
Total 1 - 2 - 2.85 - 3.3

Interpretations from the Table

 From this table we interpret that in terms of brand reputation Bharti AXA general
insurance has a high portfolio of brand securities and good reputation as
compared to Reliance general Insurance because they does not have its brand
portfolio of existing securities in the market as well as reputation in the market in
terms of brand is lower so they have low strengths and weakness in the market.

 In terms of level of product integration Bharti AXA General Insurance has large
variety of products that can be introduced in the market but on other hand
Reliance general insurance cannot justify its product integration in the market
because of low competition and low rating as justified from other competitors
because of its low strengths and weakness.

 In terms of range of products Bharti AXA general insurance offers high ranges of
insurance products in the market as compared to reliance general insurance
because reliance general insurance have low variety of products in the market and
cannot offer good strengths and weakness in the market.

 In terms of market share Bharti AXA general insurance has a low market share in
terms of its customers and products have low share in the market whereas
 Reliance General Insurance has a moderate market share and considered as a
moderate weakness of reliance industries in the market.

 In terms of low cost structure a company is said as good company with less term
insurance is considered as a good company for insurance in low cost structure. In
case of Bharti AXA General Insurance this company has a moderate low cost
structure because of its term insurance because in this we have to pay term
insurance in car up to Rs 7.5 lakh whereas as compared to Reliance General
Insurance they have their high Strength in terms of Low Cost because they
provide term insurance in car up to Rs 10 Lakh which is bad for the company so
bharti Axa company is considered as a good company in terms of general
insurance so this company cannot cover their strengths and weakness .

 In terms of variety of distribution channel both the companies uses same channel
for Distribution and the mode of distribution remains same to the customer so
both the companies i.e. Bharti AXA General Insurance and Reliance General
Insurance have their moderate strength and weakness that can be improved easily.

 Superior IT capabilities play an important role in the market In terms of

competitors as well as for the customers who are buying this general insurance. In
Bharti AXA General Insurance they have a bad connection with IT capabilities
which can be easily improved in the market in order to improve their strengths
and weakness whereas Reliance General Insurance Have Strong IT capabilities in
the market because of their high strength in the market.

 On the basis of strong online presence Bharti AXA General Insurance does not
have a good connectivity with online features in terms for applying for any
insurance plan by the customer which reduces their strengths and weakness in the
market whereas Reliance General Insurance Has a high Impact On the online
presence for customers in the market so that they can easily apply for loan online
in the market which improve their relative strength in the market.
 In terms of successful promotions both the companies i.e. Bharti AXA General
Insurance and Reliance General Insurance uses same promotion technique in
order to sell their insurance policy online in the market. So both companies have
their moderate strengths and weakness which can be improved easily in the
market.

 In terms of all the comparison made from the total score we notice that Reliance
General Insurance has high score in terms of policy as well as insurance cover and
protection so the Customer Choose Reliance General Insurance As the best
company in terms of General Insurance Providers In India as compared to Bharti
AXA General Insurance and Bajaj Allianz General Insurance.”