Specific, actionable factors related to a particular firm are crucial in an EFE Matrix to tailor the analysis to that firm's external environment, unlike more general factors in a CPM. Including considerations like EROEI in an alternative energy matrix can affect the rankings of different energy sources.
In the context of an EFE Matrix, which stands for External Factor Evaluation, it is imperative to include specific, actionable factors that are intimately related to the particular firm. This approach ensures that the analysis is tailored to the firm's external environment and can help strategize accordingly. Unlike a Competitive Profile Matrix (CPM), which might include more general factors to compare a firm to its competitors, the EFE should be uniquely customized to reflect the firm's specific opportunities and threats.
Considering factors such as EROEI - Energy Returned on Energy Invested - provides a more nuanced analysis. For instance, solar energy might receive a boost in an alternative energy matrix considering its relatively high EROEI. Conversely, a resource with a low EROEI, such as ethanol produced from corn, may move down in rankings.
So, incorporating detailed and particular factors into an EFE Matrix greatly enhances its relevance and effectiveness for strategy development for the firm in question.