Final answer:
The statement is True. The Competitive Profile Matrix (CPM) is a tool used in strategic management to analyze a firm's competitive position in the market.
Step-by-step explanation:
The statement is True. The Competitive Profile Matrix (CPM) is a tool used in strategic management to analyze a firm's competitive position in the market. It identifies major competitors and assesses their strengths and weaknesses in the firm's strategic position. By comparing strengths and weaknesses, the CPM helps the firm identify potential areas of competitive advantage and develop strategies to maintain or improve its position.
For example, if a sample firm is analyzing its strategic position in the smartphone market, the CPM would identify major competitors like Apple, Samsung, and Huawei, and assess their strengths and weaknesses in areas such as brand reputation, product quality, and pricing strategies. This information helps the sample firm understand how it compares to its competitors and make informed decisions regarding its competitive strategies.