Nov 14, 2022 • 2 min read
What is a benchmarking analysis? 4 examples
Performing a benchmarking analysis can be very useful to improve the competitiveness of a company. One of the most complicated tasks when starting a business is to design an effective strategy, which leads the company to achieve the proposed goals. One way to simplify this process is to carry out a study of the operations and performance of competing companies. This can give us an idea of what the market is like and, in addition, it can also help us to know our own business much better. We will tell you exactly what a benchmarking analysis consists of and what benefits it can offer your company. We will also talk about some companies that used this strategy to improve their results.
Benchmarking analysis: What is it?
The meaning of benchmarking in English is “point of reference”. It is a system used by companies, which consists of carrying out a detailed study of the strategies and practices used not only by the company itself, but also by other organizations. These other organizations may belong to the competition, or to other sectors. Some of the aspects that are analyzed are the processes carried out, the way of working, the products that are sold, the services offered…
What benefits does it offer?
Carrying out a benchmarking analysis has important advantages for companies. First of all, it should be noted that it is a process that helps to know the business in greater detail, to identify its strengths and to see what are the possible areas for improvement. It also helps to set realistic goals.
On the other hand, by analyzing and studying the competition and the market, it will be possible to implement changes that will help the company reach a greater number of customers and be more competitive. This will allow the business to grow and increase its profit. In addition, it is a methodology that provides information about the current state of the market, which helps to identify and understand much better the opportunities that a company has.
Other benefits worth mentioning are the improvement of productivity and business communication; the refinement of processes, and the reduction of costs, something that is achieved by identifying effective strategies and reducing the possible risks that the company could face.
Examples of benchmarking in large companies
There are several large companies that, in the past, have carried out successful benchmarking analysis to improve their competitiveness and improve their results. Here are several examples:
- Starbucks. This company conducted a benchmarking analysis and studied a completely different company: Toyota. Starbucks redesigned its workspace, which allowed it to improve the order picking process.
- McDonald’s. In this case, the company carried out a detailed study of the profiles of its regular customers in Spain. This allowed them to know much better the performance of their restaurants, as well as the preferences of their customers.
- Xerox. Xerox analyzed the best practices of its Japanese affiliate, Fuji-Xerox. The goal was to know much better the methods and processes, as well as the products and materials. The analysis and results helped the company set new goals and create new processes.
- Tacoronte Cosmetics. Some of the aspects that this company improved, thanks to the analysis of Chiqui Chic, were the distribution of products and customer service.
A benchmarking analysis can offer great benefits to your company, but it is essential to know what are the steps to follow and the different elements that must be taken into account. At Ideafoster we offer a wide range of services to help you discover new opportunities. We help you make informed decisions, innovate and keep your company growing day by day.
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