Benchmarking

Benchmark

Benchmarking is a tool to improve product design and user experience based on your competitors and similar products. Don't forget to prioritize your product strategies through the insights generated from the analyses.

Benchmarking in business means measuring your company’s quality, performance and growth by analyzing the processes and procedures of others. If you believe there’s something that can be improved within your organization, you can see how your business stacks up against the “standard” and plan out a path for betterment, whether that means cutting costs, boosting efficiency and productivity, or growing revenue.

The ultimate goal of benchmarking is continuous improvement, something all businesses should aim for. Comparing your business to others can help you generate ideas that you can adopt to get ahead.

Benefits of benchmarking in business

Benchmarking is not a one-and-done exercise; to truly benefit from this practice, a company must engage in consistent, ongoing measurement of their key activities to ensure they’re moving toward their goals.

Businesses that make benchmarking a regular practice can:

• Keep improving internal operations. Benchmarking your processes and procedures, especially against internal standards, can help your team become more efficient and productive year over year.
• Understand what’s working and what isn’t. A deep, thorough analysis of your business’s past performance will allow you to identify trends and patterns that you may not have noticed as they were happening. Looking at this data will give you a clear picture of what behaviors and practices improve overall business results and which ones don’t.
• Adopt or improve upon competitors’ practices. When you study your competition, you begin to understand what they’re doing that makes them successful, as well as areas where they falter. By adapting competitors’ best practices to your organization’s needs and deviating from the things customers or clients don’t like, you can optimize your position in the market and better appeal to your target audience.
• Reduce costs by increasing efficiency. Benchmarking is most often used to improve performance through efficiency. Cutting out waste in your processes, be it monetary costs or time and effort spent, will help you streamline yours operations and ultimately help you retain more of your revenue.
• Focus on practices and offerings that promote customer satisfaction and loyalty. Gathering feedback and data from customers (either your own or your competitors) will give you greater insight into what they like and don’t like, and what you can do to keep earning their business in the future.

Case study

Mr. D.S. Pughazhyendhii is a married man who lives in Bangalore which is a highly crowded city. His Family comprises five members including his wife, a five-year-old boy, his father, and his mother. He visits his native place Madurai which is 500kms away from Bangalore once a month. Also, he will be using his car to commute to his office. His budget falls between 8 to 10 lakhs on road. Please suggest to him options so that he will buy a good car for his family.

Note: Pughazhyendhii is fond of big cars

Points to be consider:

• Budget is 8 - 10 lakhs
• 5 seater with comfortable space

According to the Case study given, 4 vehicles currently present in the Indian market have been compared.

1. Tata Nexon

2. Hyundai Venue

3. Mahindra XUV300

4. Kia Sonet

Tata Nexon Hyundai Venue Mahindra XUV300 Kia Sonet

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Pros & Cons of Tata Nexon