|11/11/2015 - 17:48||aida.boukhris|
Why do we benchmark our competitors?
To acquire a level of insight and with that a competitive advantage. The benchmarking of competitive advantages enables a company to make better decisions about the competitive advantages it wants to develop and about its strategic objectives. The set objectives are the platform for carrying out the benchmarking of strategies, by which companies improve the quality of decisions about strategies that lead to meeting the set objectives.
In order to proceed with a benchmark of competitors, the startup needs to identify the target competitors by following the guidelines below:
- Who is also providing the same or similar product/service in your market?
- Have good range of targets for benchmarking. DON’T want to be too narrow.
- The more specific the data the better. But if numbers are not available use estimates
- Find best‐in‐class firms for the most important areas that are supposed to be benchmarked
- If you don’t know who is the best: Do your RESEARCH (worst case, take a guess)
- Look at competitors which produce at lowest costs, have highest ROI, or highest customer satisfaction, etc.