Benchmarking Analysis is a market research which is used to compare the existing performance with competitors and improve the skills to continuous improvement.
There are four types of benchmarking analysis.
- Internal : Comparison of business processes inside the organization
- Competitive: Competitor to competitor comparison about products, process or methods
- Functional: Comparison of similar practices within the same processes outside the organization
- Generic: Conceptualizing unrelated business processes that can be practiced in the same way regardless of organization
Market research is the continuous process of gathering data on product and service and the business practices. It looks into the size of the market, the various customer segments and buying patterns, the competition, and the economic environment.
The objectives of the market analysis section of a business plan are to show investors that you know your market and the market is large enough to build a sustainable business.