Benchmarking as a Business Strategy For Improving Business Performance: Best Practice in the Industry - Research Paper Example

According to Damelio, benchmarking is a “process and not an event”. It involves constantly looking outside the organization to learn the tricks of achieving excellence in an organisation. In other words, it is a learning experience and once the lesson is learned then the process is applied in the company. The first step in the process of benchmarking involves a thorough understanding of the current norm of business and then analyzing the business practice. The next step involves doing a complete analysis of the variance between the company’s practices and the best practice in the industry.

When the difference is identified steps are then put in place to try and match the company’s performance with the best that is available in the industry. The last step which involves implementation is critical if benchmarking is to be successful. In trying to close the gap between current company standards and the ideal standards then consistency is important when implementing the strategy. Finally, evaluation of results is necessary so as to determine the extent to which the whole process is successful.

In the marketplace, customers want to be associated with the best brands, current fashion trends, and best practices. Any company that falls short of these standards is doomed to fail. It will be relegated to the basement and be left to cater to the low-end market. Now in any market, there are innovative and established firms which are considered market leaders in the industry. They are regarded highly in the eyes of the consumer and they make huge profits.