Competitive Benchmarking Definition
In business, the process of competitive benchmarking is the comparison of a company’s processes and performance metrics to those of its competitors. The goal is to identify areas where the company can improve its own performance in order to better compete in the marketplace.
There are many different ways to compare companies, but some common metric categories include: financial performance, customer satisfaction, operational efficiency, employee productivity, and innovation. The specific metrics used will vary depending on the industry and the type of business.
Competitive benchmarking is an ongoing process, not a one-time event. It should be part of a company’s regular strategic planning process, so that it can continuously monitor its performance and adapt its strategies as needed.
