In a weighted competitive strength assessment, what should the sum of importance weights equal?

In a weighted competitive strength assessment, the sum of importance weights should equal 1.00. This standardization allows for an effective comparison of different factors or criteria that contribute to the competitiveness of a company. By summing the importance weights to 1.00, each weight reflects its relative importance in relation to the total, making it easier to determine how each factor influences overall competitiveness.

When each weight is properly scaled to sum to 1.00, it ensures clarity in how much significance is placed on each criteria. This is particularly useful in prioritizing areas where a company may want to focus its strategic efforts. For example, if one criterion is given a weight of 0.5, it signifies that it is considered twice as important as a criterion with a weight of 0.25.

Alternatively, if the weights were to sum to 50 percent, 10, or 100, it would create inconsistencies in interpretation, where the relativity of each criterion's importance could not be clearly established. Therefore, using a sum of 1.00 for importance weights is essential for maintaining a coherent and useful competitive analysis framework.