Since 2000, outsourcing industry has grown exponentially. falling telecom tariffs, the growth of the internet, and the availability of inexpensive local workforce contributed to the rise of the outsourcing industry globally. not only has globalization opened new doors, but created several hurdles in the market as well. due to emerging competition, changing market conditions, customer preferences and government policies, companies are facing new challenges and threats. Business research provides insights in a timely accurate and relevant manner to tackle such difficult situations. Business research services conduct research on the prospective customers, competitors, and the potential markets. Benchmarking is one such research activity undertaken by business research services providers in India.
What is Benchmarking?
Benchmarking is a way of discovering what is the best performance being achieved, whether in a particular company, by a competitor or by an entirely different industry. This compares ones business processes and performance metrics to industry bests and best practices from other companies.
Benchmarking can also support the selection, planning, and delivery of projects in project management. Dimensions typically measured are quality, time and cost. to identify gaps in an organization’s processes in order to achieve a competitive advantage, all these information can be used. The measurement of differences in comparative performance between a particular company and its competitors particularly the best performing competitors is called benchmarking. business owners are able to increase the performance of their companies by adopting the best practices of their competitors, by analyzing the benchmarks.
Benchmarking involves:
As a management tool, it is used widely approach. a benchmarking analysis is similar to a report card, which shows the marks obtained by one student in comparison to other students. Below are the processes involved with benchmarking analysis.
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- Determining problem areas
- Identifying industries
- Determine the leaders
- Collect data to identify measures
- Recommending strategic plans for improvement
Importance of Benchmarking
Growing your business doesn’t just happen overnight. Increasing productivity and performance is important to grow. Market research and benchmarking remain a vital tool to capitalise on opportunities and adopt best practice techniques.
Take one instance-during 1973, when Britain had nearly ten major domestic television manufacturers but the next year, there was only one manufacturer in the market. The rest nine manufacturers were taken over by Japanese television companies. Domestic manufacturers use world class benchmarking to improve quality and instead paid no attention to quality or costs of foreign companies thus were on the losing side. Therefore, it is understood that through benchmarking analysis, business research services worldwide help companies to be on the winning side.
At Market Quotient, we offer accurate benchmarking services to our clients about their competitors and also the industry they belong. Ask us for a FREE evaluation of your business problems and outperform your peers.
