Learn in the textbookCompetitive Economics and Market Concepts
DefinitionBenchmarking (ベンチマーキング) is a method of measuring the level of your own products or operations, comparing it with that of an excellent company to identify the gap, and using the result to improve.
ExplanationAn excellent practice used as a model is called a best practice, and benchmarking is the activity of comparing your company against it. The comparison partner need not be in the same industry, since a company from another sector that excels at a specific operation such as logistics or customer service can also be chosen.
AnalogyIt is like putting videos of yourself and a faster friend side by side, spotting differences in arm swing and stride, and working them into your training.
Memory hookA benchmark was originally a mark cut by surveyors as a reference for height. Here another company's excellent level becomes the reference point for measuring your own.