![]() It is concerned with comparing your company’s products and services. It is also common to compare the strategic goals in order to spot new strategic choices. During the process, the companies identify the winning strategies (usually outside their own industry) that successful companies use and apply them to their own strategic process. Managers use this type of benchmarking to identify the best way to compete in the market. Tuominen and Bogan & English identified these 3 major types: There are different types of benchmarking the managers can use. Still, benchmarking remained the 4th top used tool by businesses in the world in 2013. The graph shows that, although, the satisfaction of the tool is high, the usage of it has declined since the heights in 1999. In addition, annual surveys from Bain & Company’s indicate similar results. The survey done by The Global Benchmarking Network reveals that adaptation of the tool in organizations vary from 68% for informal benchmarking to 49% and 39% for performance and best practice benchmarking, respectively. The tool is one of the most recognized and widely used tools of all the business strategy tools. This would be a new way to gain customers and may result in at least temporary competitive advantage. For example, a small family owned farm selling its own agricultural products online could apply the same social media strategies as internet blogs to attract attention and gain new customers. The company can gain a competitive advantage if it applies the best practices from other industries to its own industry. ![]() ![]() The knowledge acquired about other businesses can be easily transferred to your own organization. By observing and scrutinizing such companies you can identify the processes, skills or competences that contribute to organization’s success and then apply the same practices to your own company. It is often unclear how successful companies achieve superior performance.
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