Definition of 1. Benchmarking Enterprise

The definition of benchmarking enterprises is the first and most critical step in enterprise research. The definition of benchmarking enterprises needs to be considered from the three dimensions of market, customer and product, namely:

Market dimension: Benchmarking enterprises refer to enterprises that provide the same or similar products or services, meet the same or similar customer needs, and compete for the same or similar market share in the same market or adjacent markets. For example, Champ Consulting's benchmarking companies include other consulting agencies that provide market research, investment and financing consulting, IPO listing consulting and other services, such as [Roland Berger], [Deloitte], [PricewaterhouseCoopers], etc.

Customer dimension: A benchmarking enterprise is an enterprise that provides the same or similar value proposition to the same customer group or adjacent customer groups, meets the same or similar customer needs, and influences the same or similar customer decisions. For example, the benchmark companies of Shangpu Consulting include other consulting agencies that provide professional market research, investment decision-making, IPO counseling and other services for small and medium-sized enterprises, start-ups, investment institutions and other clients, such as [Analysys], [Zero Research], [CICC], etc.

Product dimension: Benchmarking enterprises refer to enterprises that provide the same product or adjacent products, have the same or similar functions, performance, quality, price and other attributes, meet the same or similar customer needs, and form the same or similar substitution effect. For example, the benchmarking companies of Shangpu Consulting include other consulting agencies that provide industry research reports, market research reports, investment feasibility reports, fund-raising feasibility studies and other products, such as [Sadie Consulting], [Analysys Think Tank], [China Business Intelligence Network], etc.

The definition of benchmarking enterprises needs to be carried out according to different purposes and situations, and different benchmarking enterprises may have different impacts and threats on enterprises. Therefore, when conducting business research for clients, Shangpu Consulting will select the appropriate scope and level of benchmarking enterprises according to the specific needs and objectives of clients, so as to analyze the situation and strategies of benchmarking enterprises more effectively.

Information Collection of 2. Benchmarking Enterprises

The information collection of benchmarking enterprises is the second and most basic step of enterprise research. The information collection of benchmarking enterprises needs to be carried out from multiple channels and angles to obtain as comprehensive and accurate information as possible. The information collection of benchmarking enterprises mainly includes the following ways:

Public information collection: collect public information such as company information, product introduction, service content, financial report, strategic planning, market dynamics, customer evaluation and other public information of benchmarking enterprises by visiting the official websites, social media platforms, news media, industry associations, business databases and market research reports of benchmarking enterprises. The advantage of this method is that the information comes from a wide range of sources, easy access, and low cost. The disadvantage is that the information may be incomplete, not timely, inaccurate, and not in-depth.

Secret information collection: collect confidential information of benchmarking enterprises, such as product design, technology research and development, cost structure, price strategy, channel management, customer satisfaction, market feedback, future plans, etc. by secretly visiting internal personnel, customers, suppliers, partners, distributors, etc. The advantage of this approach is that the information is more authentic, more valuable and more targeted, while the disadvantage is that the information is difficult to obtain, costly, risky and morally questionable.

Field investigation: by personally or entrusting a third party to the benchmark enterprise's production base, sales outlets, service centers and other places, on-site investigation and experience, collect the benchmark enterprise's on-site information, such as product quality, production efficiency, service level, customer feedback, market share and so on. The advantage of this approach is that the information is more intuitive, more objective, and more specific, but the disadvantage is that the information is limited, time-consuming, and may cause the other party to be alert.

Simulating competition: by simulating the behavior and strategy of benchmarking enterprises, predicting the possible reactions and results of benchmarking enterprises, and collecting potential information of benchmarking enterprises, such as competitive advantages, competitive disadvantages, competitive intentions, competitive risks, etc. The advantage of this approach is that the information is deeper, more forward-looking, and more enlightening, while the disadvantage is that the information is uncertain, unstable, and unreliable.

When collecting information on benchmarking enterprises for customers, Shangpu Consulting will comprehensively use the above methods to select appropriate information sources and methods according to different types and characteristics of benchmarking enterprises to ensure the validity and reliability of information. At the same time, Shangpu Consulting will also abide by relevant laws and regulations and professional ethics, and will not take improper means or infringe upon the legitimate rights and interests of benchmarking enterprises, so as to maintain the good reputation and reputation of Shangpu Consulting.

Analytical Methods for 3. Benchmarking Enterprises

The analysis method of benchmarking enterprises is the third and most core step of enterprise research. The analysis method of benchmarking enterprises needs to be carried out from multiple angles and levels to reveal the nature and laws of benchmarking enterprises. The analytical methods of benchmarking enterprises mainly include the following:

SWOT analysis: SWOT analysis refers to the method of evaluating the comprehensive strength and competitive situation of benchmarking enterprises by analyzing the advantages (Strengths), disadvantages (Weaknesses), opportunities (Opportunities) and threats (Threats) of benchmarking enterprises. SWOT analysis can help companies understand the internal conditions and external environment of benchmarking companies, as well as the strategies and actions that benchmarking companies may take. For example, when Shangpu Consulting conducted corporate research for a new energy vehicle company, it used SWOT analysis to analyze the SWOT matrix of its main benchmark company [Tesla].

Five Forces Analysis: Five Forces Analysis refers to the analysis of the five basic forces of the industry in which the benchmarking enterprise is located, that is, the competition of competitors within the industry (Rivalry among Existing Competitors), the threat of potential entrants within the industry (Threat of New Entrants), the threat of substitutes within the industry (Threat of Substitutes), the bargaining power of suppliers upstream of the industry (Bargaining Power of Suppliers) and the bargaining power of buyers downstream of the industry (Bargaining Power of Buyers) are used to evaluate the competitive pressure and profitability faced by benchmarking enterprises. Five forces analysis can help enterprises understand the industry structure and industry dynamics of benchmarking enterprises, as well as the impact and challenges that benchmarking enterprises may be affected. For example, when Shangpu Consulting conducted enterprise research for an online education company, it used five forces analysis to analyze the five forces model of the industry in which its main benchmark company [NetEase Youdao] is located.

Competitive advantage analysis: Competitive advantage analysis refers to the method of evaluating the competitive advantage and competitive differentiation of benchmarking enterprises by analyzing the core resources, core competencies, core values and core strategies of benchmarking enterprises. Competitive advantage analysis can help enterprises understand the source and characteristics of the competitive advantage of benchmarking enterprises, as well as the competitive barriers and boundaries that benchmarking enterprises may form. For example, when Shangpu Consulting conducted enterprise research for an e-commerce platform company, it used competitive advantage analysis to analyze the competitive advantages of its main benchmark company [Pinduoduo].

When conducting benchmarking enterprise analysis for clients, Shangpu Consulting will select appropriate analysis methods and tools according to different benchmarking enterprise characteristics and objectives, so as to better understand the competitive advantages and competitive strategies of benchmarking enterprises.

Monitoring and feedback of 4. benchmarking enterprises

The monitoring and feedback of benchmarking enterprises is the fourth and most important step in enterprise research. The monitoring and feedback of benchmarking enterprises need to be carried out from many aspects and frequencies, so as to update and adjust the information and analysis of benchmarking enterprises in a timely manner. The monitoring and feedback of benchmarking enterprises mainly include the following contents:

Dynamic monitoring of benchmarking enterprises: collect and analyze the dynamic information of benchmarking enterprises in a timely manner by continuously paying attention to the latest developments and changes of benchmarking enterprises, such as product release, price adjustment, market promotion, cooperative alliance, financial situation, strategic adjustment, etc., so as to predict the next action and possible impact of benchmarking enterprises. The dynamic monitoring of benchmarking enterprises needs to determine the appropriate monitoring frequency and scope according to the importance and activity of different benchmarking enterprises to ensure the timeliness and effectiveness of information. For example, when Shangpu Consulting conducted enterprise research for a fast-moving consumer goods enterprise, it used the benchmark enterprise dynamic monitoring table to record and analyze the dynamic information of its main benchmark enterprise [Unilever], as follows:

time dynamic analysis

January 15, 2024 Unilever released its financial report for the fourth quarter and full year of 2023, showing full-year revenue of € 51.3 billion, up 5.8 per cent, and net profit of € 7.2 billion, up 10.4 per cent. Unilever's better-than-expected financial performance shows that it has maintained solid growth despite the impact of the new crown epidemic, mainly due to its strong performance in emerging markets and its diversified footprint in areas such as personal care, home cleaning and food and beverage.

On January 20, 2024, Unilever announced a strategic cooperation with [Starbucks] to launch Starbucks-branded ready-to-drink coffee and tea products in Chinese mainland, Hong Kong, Macau, Taiwan, Singapore, Malaysia and other Asian markets. Unilever's partnership with Starbucks is an important initiative in the beverage sector, aiming to leverage Starbucks' brand influence and loyal consumers to expand its market share and coverage in Asia, as well as a strong response to its benchmark company [Nestlé], which is also partnering with Starbucks to launch coffee capsules and powder products.

On January 25, 2024, Unilever announced the sale of its beauty brand [Estee Lauder] to [L'Oreal] for $4 billion. Unilever's sale of Estee Lauder is a strategic adjustment in the field of beauty. The purpose is to focus on its more competitive and growth potential brands, such as [Dauphin], [Qingyang], [Ponzi], etc., and also to raise funds., Used to acquire or invest in other brands or companies that are more in line with its strategic direction.

Feedback evaluation of benchmarking enterprises: by summarizing and evaluating the information and analysis of benchmarking enterprises on a regular basis, checking the accuracy and effectiveness of the information and analysis of benchmarking enterprises, finding the deficiencies and improvements of the information and analysis of benchmarking enterprises, and putting forward suggestions and measures for the information and analysis of benchmarking enterprises in order to optimize the quality and effect of the information and analysis of benchmarking enterprises. The feedback evaluation of benchmarking enterprises needs to determine the appropriate evaluation criteria and methods according to the research objectives and results of different benchmarking enterprises to ensure the quality and effectiveness of information and analysis. For example, when Shangpu Consulting conducted corporate research for a hotel chain, it used the Benchmarking Corporate Feedback Evaluation Form to summarize and evaluate the information and analysis of its main benchmarking companies [such as Home].

When monitoring and feedback benchmarking enterprises for customers, Shangpu Consulting will adjust the frequency and content of monitoring and feedback of benchmarking enterprises according to the changes and needs of different benchmarking enterprises, so as to update and optimize the information and analysis of benchmarking enterprises in a timely manner.

Conclusion

Corporate research is one of Shangpu Consulting’s core businesses and a key means of delivering high-quality, efficient consulting services to clients. With rich experience and professional ability in enterprise research, Shangpu Consulting can provide customers with comprehensive, accurate, in-depth and forward-looking benchmarking enterprise information and analysis, help customers understand the strength and strategy of benchmarking enterprises, formulate their own competitive advantages and competitive countermeasures, and achieve market success and leadership.