Benchmarking:

It is the process of determining the very best and quality standards. It also provides with data to show what can be achieved and how can be achieved. The benchmarking is the systematic method by which organizations can measure themselves against the best industry practices. Benchmarking is the process of barrowing ideas and adapting them to gain competitive advantage. Some of the classifications of benchmarking are
1. Product benchmarking.
2. Process benchmarking.
3. Strategic benchmarking.
4. Performance benchmarking.
Moreover benchmarking can be defined as measuring an organizations performance against that of best in class companies, determining how the best in class achieve those performance levels. Product benchmarking is also called ad customer satisfaction benchmarking or customer value profiling. It helps to identifying activities where improvement is possible. The comparison of different features and attributes of competing products and services. In process benchmarking refers to comparison and it is more effective and efficient process to be implemented. Strategic benchmarking is totally different from others which refer to examining competitive position in the market place. It is also used to study the business strategy of another successful business and use the strategy for becoming more competitive. The performance benchmarking is very important to indentify different functional area where scope for improvement is high.