Business memo

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The competitive profile matrix premised its analysis on fifteen critical factors that were critical determinants for the success of the three firms in State College market. Based on the data, it is evident that Cheese Cake Factory performed exemplary in relation to its competitors as demonstrated by its high scores in many of the perceived crucial success factors. Cheese cake Factory shows major strengths in its marketing strategy, business layout, and market experience. This factors most likely will enable it to gain a competitive edge over the rival firms in the State College market. The business, although, depict significant market experience in the industry from their major or minor scores.

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Conversely, from the perceived essential success factors, all the firms depict a great show with either registering a major or minor strength. However, in terms of business layout and marketing strategy, Cheese Cake Factory stands out by depicting major strengths compared to the other players that show weaknesses in these particular factors. Similarly, Café Deli and Cheese Cake Factory have a poor performance in pricing strategy as shown by weaknesses record compared to Paulman’s that has a major strength in this success factor (Morningstar). This implies that Paulman’s prices are relatively low compared to the other two players, and this can significantly affect Cake’s sales volume in State College market. The target market is price conscious due to its domination by a student population, it is undeniable that Paulman’s can thus continue to dominate the market due to its low pricing strategies (Nathan).

Notably, all the three companies have weaknesses in sales distribution that has seen their sales plunge in the last years. This has been worsened by increasing administrative costs and other labor costs. Notwithstanding, Cheese Cake Factory depicts a weakness in stock management unlike the other firms that have major strengths as was evidenced by a fall in stock price from $50.55 to 46.83 in 2014-2015 (Cheese Cake Factory 32), before rising to the current $61.36 as of 9th of Feb. 2017 (The Street ratings 1). However, Cheese Cake Factory has a competitive edge in the market due to its organizational culture arising from its elaborate practices.

It is evident the competitive profile matrix indicates that the three firms can be equally competitive in the target market despite their varied strengths and weaknesses. However, Cake has a high weighted score compared to Café Deli and Paulman’s since it balances its competencies across the critical success factors. For instance, Paulman’s, has extreme strengths and weaknesses resulting in a lower weighted score. The project is thus ideal and needs further feasibility studies to determine if the project can financially viable.

Competitive Performance Matrix

Cheese cake Factory Café Deli Paulman’s Cookies
Critical success factors Weight Rating Weighted score Rating Weighted score Rating Weighted score
Market share 0.06 3S 0.18 3S 0.18 4S 0.72
Product quality 0.15 3S 0.45 4S 0.60 3S 0.45
Organizational culture 0.05 3S 0.15 2W 0.30 2W 0.10
Marketing strategies 0.15 4S 0.60 2W 0.30 3S 0.45
Stock management 0.05 2W 0.30 3S 0.15 3S 0.15
Brand equity 0.05 3S 0.15 4S 0.20 3S 0.15
Consumer loyalty 0.06 3S 0.18 4S 0.24 3S 0.18
Business outlet layout 0.04 4S 0.16 3S 0.12 1W 0.04
Service innovation 0.05 2W 0.10 3S 0.15 2W 0.10
Customer service 0.10 3S 0.30 3S 0.30 3S 0.30
Pricing strategies 0.05 1W 0.05 1W 0.05 4S 0.20
Financial position 0.04 3S 0.12 3S 0.12 3S 0.12
Sales distribution 0.05 2W 0.10 2W 0.10 2W 0.10
Personnel skills and knowledge 0.10 3S 0.30 3S 0.30 3S 0.30
Market experience 0.06 4S 0.24 3S 0.18 4S 0.24
Total 3.38 3.19 2.88

 

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  1. The Street Ratings. Cheese Cake Factory Inc. 2017. Web. 12 Feb. 2017.
  2. Morningstar. “CAKE: Cheesecake Factory Inc. Top Competitors and Peers. 2017. Web. 12 Feb. 2017.
  3. Nathan, Ralph. “Comparing The Cheesecake Factory’s Performance with Its Peers’ – Market Realist.” 2016. Web. 12 Feb. 2017.
  4. The Cheese Cake Factor. Annual Report. 2017. Web. 12 Feb. 2017.
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