Business Process & Training

Competitive Benchmarking

Competitive benchmarking is a direct competitor-to-competitor comparison of a product, service, process, or method. This form of benchmarking provides an opportunity to know yourself and your competition better; combine forces against another common competitor. An example of competitive benchmarking within the Department of Defense, might include contrasting Army and Air Force supply systems for Joint initiatives. Within the private sector, two or more American car companies might benchmark for mutual benefit against common international competitor; or, rival chemical companies benchmark for environmental compliance.


• Comparing like processes
• Know your competition better
• Possible partnership
• Useful for planning and setting goals
• Similar regulatory issues


• Difficult legal issues
• Relatively low performance improvement
• Threatening
• Limited by trade secrets
• May provide misleading information
• May not get best-in-class comparisons
• Competitors could capitalize on your weaknesses