We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is Business Benchmarking?

Malcolm Tatum
By
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Business benchmarking is a strategy that involves understanding which organizations within an industry are setting the standards that all participants in that industry must meet in order to remain viable to consumers and competitive within that industry. By identifying the standards as well as who is setting them, companies can begin to identify ways in which to not only meet those benchmarks to the satisfaction of consumers, but possibly also how to exceed them and be the means of establishing a new benchmark for the industry as a whole. Engaging in business benchmarking requires a firm grasp of what is happening in the industry, how certain standards came to be regarded as benchmarks, and understanding how to use those benchmarks to best advantage.

The process of business benchmarking can take place in any type of industry and profession. Benchmarks may have to do with the quality of goods produced, the range of functions and features consumers considered acceptable, and even the type of pricing that is applied to different goods and services. These types of standards do not emerge in some sort of vacuum, but tend to develop over time, usually due to the policies and practices of companies that are considered leaders within their industries. In order to compete with those reputable and well-established companies, the competition must find ways to match those features and characteristics that consumers find appealing, and then move on to offer some type of additional value that prompts customers to switch allegiance to the new provider.

As part of the business benchmarking process, the company will identify one or two of the leading companies within an industry and explore every facet of those operations. This will include any data that may be obtained from a public source, such as where those companies obtain raw materials for the production of goods and service, the published pricing for those products, and even how those companies organize manufacturing and administrative functions to best advantage. By learning how those industry leaders continue to remain successful, newer companies can develop their own operational and administrative structure in a way that is likely to result in products that can compete and possibly lure away enough customers to make a profit.

It is important to note that business benchmarking is not a static event, but an ongoing effort. Over time, the companies that set standards within an industry may change, as well as the practices and range of products that command the interest of the buying public. For this reason, companies must constantly evaluate what currently constitutes standards within an industry, using the new data collected from the business benchmarking process to make changes and possibly move on to become one of those industry leaders.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Link to Sources
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.