How can Competitive Benchmarking go wrong?
Some important points to remember while doing competitive benchmarking:
- Inaccurate or incomplete data: Inaccurate, out-of-date or missing data can cause problems in comparisons and conclusions.
- Not appropriate Benchmark Choice: Inappropriate benchmark selection can lead to irrelevant and deceptive comparisons, such as competitors with drastically different sizes, target markets or business models.
- Inability to Establish Goals Clearly: The benchmarking process may lose focus in the absence of precise goals and the learned information may not be useful in supporting strategic decision-making.
- Too much emphasis on metrics: A limited understanding of competitiveness may result from relying exclusively on quantitative indicators and ignoring qualitative aspects. Although they might be disregarded, qualitative factors like brand perception and customer experience are crucial.
- Disregarding Industry Dynamics: Regulatory frameworks, macroeconomic variables and industry-specific dynamics can all be ignored when developing strategies that are inappropriate to the outside world of business.
- Short-term Priority: Neglecting long-term strategic concerns might result from placing too much attention on short-term performance indicators.
Competitive Benchmarking in product management
Competitive Benchmarking in product management involves assessing the strengths and weaknesses of companies offering similar products, which is essential for product managers to make informed decisions about product pricing, marketing, and sales strategies.
Table of Content
- What is Competitive Benchmarking?
- Importance of Competitive Benchmarking
- Example of Competitive Benchmarking
- Why do Brands need to have a Competitive Benchmarking tool?
- Easy 4-step process for Competitive Benchmarking
- Benefits of Competitive Benchmarking
- What Are Different Types of Benchmarking?
- How to choose competitors to Benchmark against?
- Key methods of Competitive Benchmarking & Analysis
- Competitive Benchmarking vs. Competitive Analysis
- How can Competitive Benchmarking go wrong?
- Conclusion: Competitive Benchmarking
- FAQs On Competitive Benchmarking