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competitive benchmarking

Six Competitive Benchmarking Best Practices to Enhance Your Growth Strategy

Businesses across the globe are shifting their focus to building top-notch customer experiences. So, having a competitive benchmarking strategy is vital to stay ahead of the game. Although competitive benchmarking essentially involves comparing your company’s performance with those of the key competitors, it is much more than a casual and anecdotal view of the competition. It also involves pinpointing which of the competitor strategies to focus on and also provides an idea on the benchmarking metrices to use. A well thought-out competitive benchmarking strategy is a worthwhile pursuit that will yield desired results for businesses. It helps to measure the performance of a company and compare it to others over time. Take a look at these six competitive benchmarking best practices to follow for effective and impactful business results.

Competitive benchmarking best practices

Begin early

Understanding competition and gaining a clear overview of their strategies is like a map that shows a business the path to their ultimate destination. The sooner this is done, the better for companies to transition from a reactive to a strategic organization. Half the work in competitive benchmarking is done if businesses know where to begin. Also make it a point to establish a measurement and tracking system that keeps tabs on the progress.

Maintain a timeline

Competitive benchmarking is an extremely time consuming process as it involves researching competitors, analyzing opportunities of improvement, and implementing changes. It is advisable to limit the scope of benchmarking to research and other activities that can be finished within a time period that reflects a typical planning cycle in the company. By doing so, businesses can analyze how they compare to their competitors early in the cycle, implement changes, and share the results that can help in better planning for the next quarter.

Take inspiration from other industries

Organization can gain useful insights from analyzing companies operating outside their industry. Start by identifying one critical problem and then understand how companies in other industries with similar challenges are handling the situation. Understanding how companies in other industries are solving challenges can help organizations frame similar strategies to overcome their problems. For instance, examining how companies in the retail industry handles customer grievances and their increased focus on customer experience can help companies in other sectors to follow similar strategies to retain their customers.

Use meaningful metrics

There are several metrices that can be used to measure the overall health of a business. This makes it essential for businesses to be collectively clear on which metrics define superior performance and world-class customer support. Benchmarking research should be limited to factors that are standard across the industry, making comparison easier. Before rolling out the plan, it is also important to involve various teams to reach a consensus on how these metrics will be measured. Furthermore, focusing on key business-driving metrics like revenue, order volume, and cost of goods sold makes researching competitors and measuring success more effective.

Focus on operational improvements

Once an organization gains a clear understanding of where they want to be, focus should be shifted to team operations rather than emphasizing only on metrics. Statics can only be studied to make improvements, however, factors such as people, processes, technology, and strategies can be improved to enhance the overall performance of the business before it is too late.

Choose the right peer group

Key factors including location, size, industry, product category, and business model should be taken into consideration based on the company’s goals. For instance, if the prime objective of an organization is to understand how your performance compares to companies similar to theirs, they must limit the peer group to the same industry. However, if the intent is to gain perspective on different business processes and push the team to think outside the box, studying companies in different industries could prove to be a great option.

Competitive benchmarking

Why Should Companies Benchmark Themselves Against Competitors? A Weekly Round-Up of Popular Articles on Competitive Benchmarking

LONDON: Infiniti Research, a leading competitive intelligence solutions provider, has announced the release of their new storyboard series on how competitive benchmarking solution helps businesses to identify performance gaps and adapt to continually shifting dynamics in the marketplace.

In today’s fluctuating business environment, the challenge lies in establishing baselines, defining best practices, and creating a competitive environment in an organization. Moreover, with the increasing focus on globalization, major companies are pursuing global strategies to boost their competitiveness. However, being unclear about the company’s performance in comparison to that of the key competitors could prove to be risky. Competitive benchmarking solutions allow businesses to assess competitors’ offerings and differentiate their brand from other players in the market.

With over 15 years of experience in serving companies across all industries, Infiniti Research, has helped many organizations achieve success by analyzing their competitors’ key strengths and weaknesses. Below we’ve listed out some of our success stories and have also discussed the key benefits of competitive benchmarking for businesses.

Companies that do not measure up against their competitors have greater chances of failure in the market. Request a FREE brochure to learn more about our services portfolio and to know how our solutions help companies strategize their business plans to create additional business value.

#1: Infiniti’s competitive benchmarking engagement helped an automotive major establish market presence in Germany

Germany is one strongest country when it comes to high-tech automotive products. But, as major German automakers have already adapted to the radically changing new automotive world, it becomes highly challenging for new automotive players to gain a leading edge in this market. This was the case with one of our clients who was new to the market. Infiniti’s competitive benchmarking solution helped the client to gain comprehensive insights into the German automotive market and the major players in the industry. Furthermore, the solution helped them to build a better brand image and differentiate their service offerings. As a result, the client achieved a significant increase in their savings and was able to establish their market presence in the Germany. To gain more insights, read the complete story here.

Infiniti’s Competitive Benchmarking Solution Assists an Automotive Company Establish Market Presence in Germany

#2: Infiniti’s Competitive Benchmarking Engagement to Uncover New Market Opportunities for a Food Company

The food industry is rapidly evolving. Apart from staying on top of the emerging technologies and innovations, companies in the food industry must also keep a close watch on changing consumer preferences and key competitors. With a large number of food companies entering the market every year, it becomes quite difficult for businesses to monitor their competitors’ moves and stay updated on changing customer needs. But, a competitive benchmarking solution can help companies deal with these issues efficiently. This success story explains how competitive benchmarking solution helped a food company facing similar predicaments. Infiniti’s competitive benchmarking solution helped them to develop a standardized set of processes and marketing metrics to enhance their product offerings and improve profit margins. Want to more about the approach undertaken by the experts at Infiniti Research to help the client achieve these results? Read the complete success story here.

Competitive Benchmarking Analysis for a Food and Beverage Firm – An Infiniti Research Success Story

#3: Leveraging competitive benchmarking solution to improve quality care and patient satisfaction for a healthcare firm

With US healthcare companies moving from volume-based to value-based model, care delivery and patient centricity are becoming mainstream in the healthcare industry. Also, in the healthcare industry, relentless focus in being given to offering quality services and ensuring patient-care. In this context, healthcare companies realize the importance of leveraging competitive benchmarking solution. Wondering how competitive benchmarking solution can help healthcare companies improve efficiency, quality of care, and patient satisfaction? It is clearly evident in one of our success stories. Read the complete story below to know the other benefits of leveraging competitive benchmarking solution for healthcare companies.

Fostering a Competitive Culture Using Competitive Benchmarking Analysis – A Case Study on the US Healthcare Industry

#4: Leveraging Infiniti’s competitive benchmarking engagement to enhance agility and efficiency in the supply chain process

Supply chain benchmarking is a pre-requisite for businesses, especially in the case of logistics companies. Also, supply chain operations within an organization should be constantly reviewed to identify areas of improvement. Are you facing any difficulties in doing so? If yes, Infiniti’s competitive benchmarking solution solutions can help as it helped one of the logistics companies. They wanted to optimize and standardize their existing supply chain process. By doing a competitive landscape analysis, the experts helped the client to implement efficient business plans to ensure seamless movement of goods and timely delivery. To gain more insights, read the complete success story here.

Infiniti’s Competitive Benchmarking Assists a Leading Reverse Logistics Company Establish Market Presence

Request a FREE proposal to know how our competitive benchmarking solution will help you monitor your competitors’ strategies and formulate strategies to stay ahead of them.

#5: Enhancing service offerings for a network services provider in Latin America with Infiniti’s competitive benchmarking solution

With technological advancements and innovations, it becomes highly challenging for companies in the telecom industry to offer reliable services to the customer base. With tough competition in the Latin American market, a network service provider was facing difficulties in promoting their service offerings. Also, the company’s inability to keep up with the key competitors in the market turned out to be risky. This potentially affected the financial capital of the company. But, with our competitive benchmarking solution, they were able to recover from the lost sales and enhance ROI. Interested to know the approach undertaken by our experts to help the client? Read the complete story here for detailed insights.

Competitive Benchmarking Enables a Leading Network Services Provider to Enhance their Service Offerings in the Latin American Market

#6:  What are the steps in a competitive benchmarking process?

To sustain themselves in a competitive business environment, companies continually need to compare their performance with their peers and adopt strategies to stay ahead of competitors. Nowadays, with multiple solutions available for competitive benchmarking analysis, companies often become confused about where to start. However, it’ really imperative for companies to follow a standardized procedure to benchmark their operations against competitors. This article from Infiniti Research discusses the five critical steps in a competitive benchmarking process.

Five Critical Steps in Competitive Benchmarking

#7: How Infiniti’s competitive benchmarking engagement helped a telecom company to prioritize performance gaps and enhance profit margins

With the rising competition in the telecommunication industry, a leading player based out of the United States encountered difficulties in analyzing their competitors and capitalizing on new opportunities. Therefore, to outpace the growing competition, the telecom company approached Infiniti Research. With our approach, the client was able to analyze their key competitors and execute processes to surpass the competition. Also, by leveraging our competitive benchmarking engagement, they were able to gain a leading edge in the US telecom market and enhance profit margins. Want to gain more insights? Read our complete story here.

Analyzing the Competitors for a Telecommunication Industry with the Help of a Competitive Benchmarking– A Case Study by Infiniti Research

#8: How competitive benchmarking helps companies in the steel industry?

With the steel market getting intensively competitive with each passing day, it becomes vital for companies in the steel industry to improve cost competitiveness in the market. However, by incorporating competitive benchmarking solution, steel companies can overcome cost competitiveness. This article from Infiniti Research highlights how competitive benchmarking help steel companies focus on resource utilization, reduce wastages, and overcome cost competitiveness. Read the complete article here.

How can Benchmarking Help Improve Cost Competitiveness in the Steel Market?

CONTACT US to learn more about our competitive benchmarking solutions and their importance for your business.

Identifying Performance Gaps and Areas for Improvement for an Automotive Manufacturer With the Aid of Competitive Benchmarking

Competitive Benchmarking Strategies for an Automaker 

About the Client 

For over 7 years, the client has been a leading automotive manufacturer serving customers throughout the Western United States. With a workforce of 470+, the company was looking to expand their access to new market segments.

The Business Challenge 

Companies in the US automotive industry are facing a period of rapid competition and capital spending in their effort to compete with other automakers from across the globe. Moreover, with autonomous technology entering the market, automotive manufacturers are facing safety issues, fierce competition, and a shift in their business models. This coupled with the adoption of autonomous technology by top competitors has increased the pressure on automakers to innovate, understand competitors’ key strategies, and develop a competitive benchmarking strategy to accomplish their business goals.

The business case: Infiniti Research was approached by a major automotive manufacturer who was looking to gain a fair perspective on how well they performed compared to other organizations in the automotive industry. In addition, the company encountered a decline in its sales rate for their automotive products and wanted to improve its market share by understanding the potential game-changing efforts and initiatives undertaken by its competitors.

Is your inability to adapt to current technological innovations employed by competitors resulting in budget losses for your company? If yes, Infiniti is here to help. Request a FREE brochure to know more about our services.

Top Challenges Faced by Automotive Manufacturer 

Problem Statement 1: Revenue loss

The client’s unstructured approach to competitive benchmarking and their failure to identify competitors key marketing strategies resulted in revenue losses for the company, leading to a sharp decline in their market position. With the help of Infiniti’s competitive benchmarking solution, the client wanted to continuously improve the quality of their products and services by scrupulously monitoring the initiatives undertaken by their competitors.

Problem Statement 2: Retaining profitability

Owing to commodity price shifts and dynamism in the market, the automotive manufacturer found it challenging to retain their profit margins. By leveraging competitive benchmarking practices, they wanted to develop a standardized set of processes and competitive benchmarking metrics.

Problem Statement 3: Increasing productivity

By analyzing the sales rate of competitors, the client realized that implementing the latest automotive technologies was the key to success. Hence, by leveraging a competitive benchmarking strategy, the client wanted to gain valuable data on the current technologies and processes followed in the business environment for increasing productivity, while reducing costs.

Problem Statement 4: Identifying performance gaps

With the aid of Infiniti’s competitive benchmarking analysis, the client wanted to drill down into performance gaps to identify areas for improvement.

Want to know more about our competitive benchmarking solutions?

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Solutions Delivered and Value Offered 

By analyzing the industry challenges and requirements of the client, the experts at Infiniti Research developed a plan for effective competitive benchmarking analysis. The competitive benchmarking process revolved around the following phases:

Phase 1

The initial phase of the competitive benchmarking process involved conducting extensive researches to gain an understanding of the key competitors of the client.

Phase 2

The second phase revolved around categorizing the key competitors based on competition – direct, indirect, and substitute competitors.

Direct competitors – Companies that offered the same portfolio of services and products to the same target region as the client

Indirect competitors – Companies that targeted different clientele within the same business space

Substitute competitors – Companies that offer different products and services to the same target customers as the client

Phase 3

The third phase after categorization of the key competitors involved analyzing common marketing patterns and competitors’ weaknesses to help the client differentiate themselves by offering products and services that fill gaps that their competitors have not addressed.

Phase 4

By leveraging market information and data obtained from competitors, a competitive benchmarking framework was devised, which included detailed company profiles and an analysis of current activities and future industry developments of all the top competitors.

Phase 5

The competitive benchmarking framework helped the client to analyze competitors in terms of market penetration, product and market development, and clearly illustrated their market positioning in the target markets.

With the help of a comprehensive competitive benchmarking process, the experts at Infiniti Research helped the client assess the market opportunities in the focus geographies. The further helped them reveal all hidden opportunities in the market. Infiniti’s competitive benchmarking analysis also helped the client differentiate their business from other players in the automotive market. Moreover, recognizing a competitive advantage further helped them create a new marketing strategy and brand image by relying on the key differentiators.

Competitive benchmarking process also helped the client to:

  • Improve the quality of their services and products.
  • Increase productivity while reducing cost
  • Prioritize the areas of improvement
  • Improve their performance standards to stay relevant in the market

Lack of competitive benchmarking strategies can result in huge loses in sales, leading to a sharp decline in your market position!

Well, look no further, Request for a FREE proposal today!

 

What is Competitive Benchmarking?

Competitive benchmarking is the process of analyzing a company’s performance with that of its competitors in the industry using a set collection of metrics.  Using a competitive benchmarking analysis, not only can firms get an organized overview of their company and how it performs on different levels, benchmarking can systematically reveal performance gaps and improvement opportunities and highlight competitor strategies that need to be countered. Competitive benchmarking is a common practice to establish baselines, define best practices, identify improvement opportunities and create a competitive environment within the organizations.

What are the steps in a competitive benchmarking process?

For companies looking to build a robust competitive benchmarking framework, here are certain steps that you must follow:

Set clear goals – Businesses need to make smart decisions of their business goals.

Identify the data source – Businesses must identify the sources for the data that they want to gather for competitive benchmarking. It is vital to keep the data consistent. While choosing external sources of data for the competitive benchmarking framework it must be ensured that the data is consistent.

Set regular intervals of measurement – The time intervals at which an organization must undertake competitive benchmarking solely depends on the activities and benchmarks that they are focusing on. It is up to the organization to determine what the most appropriate interval is for the benchmark and for the business.

Implement plans and monitor results – The final step in establishing a robust competitive benchmarking framework is to execute the set processes of measuring performance and identify the deviations.

Benchmarking competitors remain to be a major challenge faced by players in the automotive sector. Our competitive benchmarking solutions simplifies the entire process. CONTACT US to know more about our services.

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