Determine the scope of benchmarking enterprises

The first key point of enterprise research is to determine the scope of benchmarking enterprises, that is, to clarify which enterprises are our benchmarking enterprises and which enterprises are not. This step is the foundation of enterprise research, and it is also a challenging step, because the scope of benchmarking enterprises is not static, but dynamically adjusted with market changes and enterprise development.

Generally speaking, there are two ways to determine the scope of benchmarking enterprises, one is a market-based method, and the other is a resource-based method. The market-based approach is to classify direct and indirect benchmarking firms based on the market sector in which the firm is located. Direct benchmarking companies refer to companies that provide the same or similar products or services in the same market area. For example, Apple and Samsung are both direct benchmarking companies in the smartphone market. Indirect benchmarking companies are companies that provide substitutes or supplements in different market segments, for example, Apple and Microsoft are both indirect benchmarking companies in the personal computer market. The resource-based approach is to classify potential benchmarking and non-benchmarking firms based on the resources and capabilities that firms have. Potential benchmarking enterprises refer to enterprises that are not in the same market area at present, but have the resources and ability to enter the market. For example, Amazon and Wal-Mart are both potential benchmarking enterprises in the e-commerce market. Non-benchmarking companies are companies that are neither in the same market area nor have the resources and capabilities to enter the market. For example, Apple and Coca-Cola are both non-benchmarking companies.

When determining the scope of benchmarking enterprises, it is necessary to comprehensively consider the market-based method and resource-based method, as well as the number and intensity of benchmarking enterprises, and select the most influential and threatening benchmarking enterprises as the research objects. For example, Champ Consulting once provided enterprise research services for a leading online education platform in China, which mainly provided online courses in K12 education and vocational education. When determining the scope of benchmarking enterprises, Shangpu Consulting first divided benchmarking enterprises into direct benchmarking enterprises and indirect benchmarking enterprises according to market areas, then divided benchmarking enterprises into potential benchmarking enterprises and non-benchmarking enterprises according to resources and capabilities, and finally selected four direct benchmarking enterprises and two potential benchmarking enterprises as research objects according to the scale and brand of benchmarking enterprises. They are: TAL, New Oriental Online, NetEase Youdao, Baidu Education, Tencent Education and Alibaba Education.

Collect Benchmarking Enterprise Information

The second key point of enterprise research is to collect benchmarking enterprise information, that is, to obtain relevant data and information of benchmarking enterprises for in-depth analysis and evaluation. This step is the core of enterprise research, and it is also the most time-consuming and laborious step, because the information of benchmarking enterprises is not readily available, but needs to be collected and sorted out through a variety of channels and methods.

Generally speaking, there are three ways to collect benchmarking enterprise information, one is public information, the other is private information, and the other is speculative information. Public information refers to the information publicly released or disclosed by benchmarking enterprises, such as the official website, annual report, press release, social media, etc. of benchmarking enterprises. It is relatively easy to obtain such information, but it is also necessary to pay attention to the authenticity and timeliness of the information. Private information refers to the information that benchmarking enterprises have not publicly released or disclosed, for example, the internal strategy of benchmarking enterprises, product details, customer feedback, employee situation, etc. It is relatively difficult to obtain such information, but there are also some legal and reasonable ways, such as attending industry meetings, visiting industry experts, investigating industry customers, etc. Speculation information refers to the information that the benchmarking enterprise may infer based on the existing public information and private information, for example, the market share, cost structure, profitability, etc. of the benchmarking enterprise. The acquisition of such information is relatively subjective, but it also needs to have certain logic and basis.

When collecting benchmarking enterprise information, it is necessary to comprehensively consider public information, private information and speculative information, as well as the importance and reliability of the information, and select the most valuable and credible information as the research content. For example, when providing enterprise research services for the above-mentioned online education platform, Shangpu Consulting collected the following information of benchmarking enterprises: historical evolution, organizational structure, business scope, product characteristics, price strategy, marketing methods, technological innovation, financial status, market performance, user evaluation, partners, social responsibility, etc. Among them, part of the information is obtained from the public information of benchmarking enterprises, for example, the historical evolution, organizational structure, business scope, etc. of benchmarking enterprises; Part of the information is obtained from the private information of benchmarking enterprises, for example, the product characteristics, price strategies, marketing methods, etc. of benchmarking enterprises; Part of the information is obtained from the speculative information of benchmarking enterprises, for example, the market share, cost structure, and profitability of the benchmarking firm.

Analyze benchmarking corporate strategy

The third key point of enterprise research is to analyze the benchmarking enterprise strategy, that is, according to the collected benchmarking enterprise information, evaluate the advantages and disadvantages of benchmarking enterprises, predict the trends and intentions of benchmarking enterprises, and formulate corresponding countermeasures and suggestions. This step is the purpose of enterprise research, and it is also the most valuable and meaningful step, because the strategic analysis of benchmarking enterprises can help enterprises to enhance their competitiveness, seize market opportunities, avoid market risks, and achieve their development goals.

Generally speaking, there are four ways to analyze the strategy of benchmarking enterprises, one is SWOT analysis, the other is five forces analysis, the other is value chain analysis, and the last is strategic group analysis. SWOT analysis method is to comprehensively evaluate the strategic situation of benchmarking enterprises according to their advantages (Strengths), disadvantages (Weaknesses), opportunities (Opportunities) and threats (Threats). For example, the advantages of benchmarking enterprises may be high brand awareness, good product quality and high customer loyalty, while the disadvantages of benchmarking enterprises may be high cost, weak innovation ability and low market penetration, the opportunities for benchmarking enterprises may be market demand growth, policy support, technological progress, etc. The threats of benchmarking enterprises may be new entrants, substitutes, price wars, etc. The five forces analysis method is to analyze the competition degree and profitability of the industry according to the industry environment in which the benchmarking enterprise is located. The five forces are: the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants, the threat of substitutes and the competition of existing competitors. For example, the high bargaining power of suppliers will lead to the increase of the cost of benchmarking enterprises and the high bargaining power of buyers, it will lead to a decline in the revenue of the benchmarking enterprise, a high threat of new entrants, a reduction in the market share of the benchmarking enterprise, a high threat of substitutes, a reduction in the demand for the products of the benchmarking enterprise, and fierce competition from existing competitors, which will lead to a compression of the profits of the benchmarking enterprise. The value chain analysis method is to analyze the core competitiveness and cost structure of benchmarking enterprises according to the value creation process of benchmarking enterprises. The value chain includes basic activities (procurement, production, logistics, sales, service) and auxiliary activities (technology, manpower, finance, management). For example, the core competitiveness of benchmarking enterprises may be the low-cost advantage in the procurement process and the high-efficiency advantage in the production process, it has realized the advantage of rapid distribution in the logistics link, the advantage of extensive coverage in the sales link, the advantage of high satisfaction in the service link, the advantage of innovation in the technical link, the advantage of high quality in the human link, the advantage of sound finance in the financial link, and the advantage of excellent management in the management link. Strategic group analysis is based on the strategic similarity of benchmarking enterprises, the benchmarking enterprises are divided into different strategic groups, and then analyze the characteristics and trends of each strategic group, for example, the strategic similarity of benchmarking enterprises can be divided according to the degree of product differentiation and cost leadership, thus forming four strategic groups, namely: differentiation strategy group (high product differentiation, high cost leadership), focus strategy group (high product differentiation, low cost leadership), cost leadership strategy group (low product differentiation, high cost leadership) and dilemma strategy group (low product differentiation, low cost leadership).

When analyzing the strategy of benchmarking enterprises, it is necessary to consider SWOT analysis, five-force analysis, value chain analysis and strategic group analysis, as well as the strategic objectives and strategic choices of benchmarking enterprises, and choose the most suitable method and angle as the analysis framework. For example, when providing enterprise research services for the above online education platform, Shangpu Consulting analyzed the following strategies of benchmarking enterprises: the strategic goal of benchmarking enterprises is to occupy a leading position in the online education market, provide high-quality education content and services, and meet users of different age groups and demand types; the strategic choice of benchmarking enterprises is to adopt differentiation strategy through continuous technological innovation and product innovation, improve the added value of products and user loyalty; the strategic advantage of benchmarking enterprises is that they have strong brand influence, rich educational resources, professional teacher team, efficient operation mode and stable financial situation; the strategic disadvantage of benchmarking enterprises is facing fierce market competition, high R & D investment, complex laws and regulations and uncertain market demand.

Conclusion

Enterprise research is an important strategic analysis tool, which can help enterprises understand their own strengths and weaknesses, identify market opportunities and threats, and formulate effective competitive strategies. From the perspective of experts, this paper introduces three key points of enterprise research, namely, determining the scope of benchmarking enterprises, collecting information of benchmarking enterprises, and analyzing the strategy of benchmarking enterprises. At the same time, this paper also shows the practical application and value of enterprise research in combination with the specific case of Shangpu consulting service customers. I hope this article can provide you with some useful reference and inspiration to help you better conduct business research and enhance your competitiveness and development potential.