Your company can make an overall assessment of, for example, efficiency, work processes, competitiveness and production methods compared to other companies. The concept can be used in different contexts. New start-up companies use it in a competitive industry, where they compare their own products and services with those of others.
Benchmarking is set up in three different main types: – Benchmarking internally within the company. Here it will take place between the various departments, offices, stores, etc. – Benchmarking between companies. This type is a way to compare your own company with any other type of company. – "Best practice". Here, comparison is also made, but you measure against the company with the best result on the market. For some companies it will be almost impossible, but it can be a good way to gather ideas.
Typically, benchmarking is used to compare your own company with various competitors, with the aim of improving your own business operations. Large companies compare many different factors; for example, price, market share, quality or customer satisfaction. This gives the company an idea of where and how it stands in the market. Based on these comparisons and experiences, the company may become more competitive and resilient in the future.
