Four Levels of Benchmarking Enterprise Analysis

The first step in benchmarking enterprise analysis is to determine who your benchmarking enterprise is. According to Michael Porter's competitive strategy framework, benchmarking enterprises can be divided into the following four levels:

Industrial benchmarking enterprise: Refers to other companies that sell the same or similar products or services in the same market. This is the most direct benchmarking enterprise and the easiest to find benchmarking enterprise. For example, Shangpu Consulting's industry benchmarking companies include other companies that provide market research, investment and financing consulting, IPO listing consulting and other services, such as 1, 2, 3, etc.

Buyer: A consumer or customer in the market whose demand, preference, purchasing power, etc. for a product or service affects the sales and profits of the business. The competitiveness of buyers depends on their bargaining power and alternative options. For example, the buyers of Champ Consulting include companies in a variety of industries, and their needs and budgets for market research and investment and financing consulting affect the revenues and profits of Champ Consulting.

Supplier: Refers to other companies or individuals that provide raw materials, equipment, manpower, capital and other production factors for the enterprise. The competitiveness of suppliers depends on their supply capacity and bargaining power. For example, the suppliers of Shangpu Consulting include various data sources, software platforms, talent markets, financial institutions, etc., which have a significant impact on the quality and cost of Shangpu Consulting's services.

Substitute: Refers to other products or services that can meet the same or similar consumer needs, but do not belong to the same market. The competitiveness of alternatives depends on their cost performance and innovation ability. For example, alternatives to Champ Consulting include various self-service market analysis tools, online education platforms, social media, etc., which may reduce Champ Consulting's potential customer base and market share.

In addition to these four levels, there is another level of potential entrants, which refers to other companies or individuals who intend to enter the same market. The competitiveness of potential entrants depends on their resources and capabilities, as well as the barriers to entry in the market. For example, potential entrants to Champ Consulting include consulting firms in other industries, Internet companies, academic institutions, etc., and they may use their own advantages and market opportunities to pose a threat to Champ Consulting.

Benchmarking companies at each level have different levels of influence and threat, which need to be weighed and dealt with according to their own circumstances. Generally speaking, industrial benchmarking enterprises are the most direct and strongest benchmarking enterprises, which need to be focused on and analyzed; buyers and suppliers are important factors affecting corporate profits, and relationships need to be maintained and managed; substitutes and potential entrants are potential factors affecting the future development of enterprises, which need to be vigilant and guarded against.

Five key points of benchmarking enterprise analysis

The second step of benchmarking enterprise analysis is to collect and analyze relevant information of benchmarking enterprises to understand their strengths and weaknesses, so as to formulate more accurate strategies for their products. The five key points of benchmarking enterprise analysis are:

Find benchmarking enterprises: through search engines, classified websites, advertising history and other methods, find out the companies or individuals that compete with themselves in the same market, and generally choose 3 to 5 of the most important benchmarking enterprises for in-depth analysis.

Get background information: Get basic information about benchmarking companies, such as year of establishment, investors, acquiring companies, number of employees, number of customers, revenue, etc., through company overview websites, financial statements, news reports, etc., to understand the size, history and financial status of benchmarking companies.

Research products and services: through personal experience, user evaluation, professional evaluation, etc., to understand the functions, characteristics, advantages and disadvantages, prices, etc. of the products and services of benchmarking enterprises, in order to understand the product and service capabilities of benchmarking enterprises.

Familiar with the target and positioning: through the home page, advertising, slogans, promotional materials and other channels, understand the target market and target customers of benchmarking enterprises, as well as their brand image, value proposition, core advantages, etc., in order to understand the market positioning and brand positioning of benchmarking enterprises.

Analysis of strengths and weaknesses: Through SWOT analysis and other methods, the background information, products and services, objectives and positioning of benchmarking enterprises are integrated to analyze the strengths and weaknesses of benchmarking enterprises, as well as their opportunities and threats, in order to understand the competitiveness and development trends of benchmarking enterprises.

Each point requires the use of effective methods and tools to obtain comprehensive and accurate data and information. At the same time, it is also necessary to note that the information of benchmarking enterprises may change with time and market changes, so it is necessary to regularly update and track the dynamics and changes of benchmarking enterprises.

Application of Benchmarking Enterprise Analysis

The third step of benchmarking enterprise analysis is to use the results of benchmarking enterprise analysis to formulate their own product strategy and market strategy to enhance their competitiveness. The results of benchmarking enterprise analysis can help enterprises determine their market positioning, differentiation advantages, growth opportunities and risk prevention, so as to formulate appropriate marketing strategies, product strategies, channel strategies and pricing strategies. Here are some specific application methods:

Determine market positioning: according to the target market and target customers of the benchmarking enterprise, as well as its own resources and capabilities, determine its own target market and target customers, as well as its own position and role in the market. For example, the target market of Shangpu Consulting is small and medium-sized enterprises, and the target customers are enterprises that need market research and investment and financing consulting. Shangpu Consulting is positioned as a professional, efficient and flexible market research and investment and financing consulting service provider in the market.

Establish differentiation advantage: according to the advantages and disadvantages of benchmarking enterprises' products and services, as well as the characteristics of their own products and services, find out their own differentiation advantages, that is, which needs of customers can be met by their products and services, while benchmarking enterprises cannot or are not as good as their own. For example, the differentiated advantage of Shangpu Consulting is to provide customized, real-time updates, data-driven market research and investment and financing consulting services, as well as a consulting team with rich industry experience and expertise.

Looking for growth opportunities: According to the changes in the goals and positioning of the benchmarking company, as well as changes in its own strengths and weaknesses, looking for growth opportunities in the market, that is, new markets or customers that their products and services can open up, or opportunities to increase market share or customer loyalty. For example, the growth opportunity of Shangpu Consulting is to use its data analysis capabilities and industry knowledge to provide customers with more value-added services, such as market forecasting, competitive strategy, risk assessment, etc., and expand customers in more industries and regions.

Preventing risk threats: according to the changes of the advantages and disadvantages of the benchmarking enterprises, as well as the changes of their own opportunities and threats, to prevent the risk threats in the market, that is, the challenges or crises that their products and services may face from the benchmarking enterprises or other factors. For example, the risk threat of Champ Consulting is that benchmarking companies may offer lower prices or better services, or that there may be more alternatives or potential entrants in the market, or that customer needs or preferences may change.

The above are some commonly used application methods, and the specific strategies need to be adjusted and optimized according to their own situation and market changes. Benchmarking enterprise analysis is not a one-time work, but an ongoing process that requires constant collection, analysis and application of benchmarking enterprise information in order to maintain its competitive advantage and market leadership.

Champ Consulting's Benchmarking Enterprise Analysis Case

In order to better explain the methods and tools of benchmarking enterprise analysis, and how to formulate strategies that meet their own characteristics and market needs according to the results of benchmarking enterprise analysis, this paper will combine the actual cases of Shangpu Consulting to carry out specific display and analysis.

Shangpu Consulting is a company specializing in providing market research and investment and financing consulting services. Founded in 2018, it is headquartered in Beijing and has about 50 employees. It mainly serves small and medium-sized enterprises, especially those in the Internet, technology, education and other industries. The core value of Shangpu Consulting is to provide customers with customized, real-time update, data-driven market research and investment and financing consulting services to help customers understand market trends, grasp market opportunities, formulate market strategies, find investors, and complete financing transactions.