Benchmarking - a management term that involves comparing features of business performance with 'best practice' performance in the same industry
Benchmarking is a management term that involves comparing features of business performance with ‘best practice’ performance in the same industry.
Importing tried and tested practices reduces the risk of failure, which means finances do not have to engage in costly research and development for its own ideas, this would allow the business to lower cost per unit increasing market share, and ilimting competition.
Benchmarking focus’s on rivals allowing firms to understand weaknesses and strength of other firms, this can be exploited and used against them through advertising, to reduce customer loyalty, reducing their sale, decreasing there market share which would create less competition allowing firms to increase sale, or even prices.