Benchmarking is a comparison of products in the market to allow a fellow competitor to have an in-depth understanding and awareness of the market information

Products and services are bench-marked accordingly to the different market segments which they are targeting as well. It also allows the company to identify the competitive advantages and disadvantages which they have.

It is a excellent strategy, but not necessarily a strategy that all businesses would consider to adopt in their own business model. Example, the top luxury brands do not use benchmarking, instead, they massively increase the price for the same product found available in the market.

The only difference this top luxury brands can commend the huge gap of price tag attracting a lot of green eyes are simply because they are the best in what they are doing.

Example: A diamond industry business specializing in diamond auctions where huge price tags are attached as compared to a diamond retailer.

Decide your company position, branding before you decide if you want to adopt this bench marking into your business.

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