In product development, what does benchmarking help a company identify?

Benchmarking is a critical process in product development that involves comparing a company's products, services, processes, and practices against industry standards or competitors. By conducting benchmarking, a company can identify performance gaps, understand best practices from leaders in the field, and determine areas where it can improve efficiency, quality, and customer satisfaction.

This analysis not only highlights areas that require enhancement but also uncovers new opportunities for innovation and growth. For instance, if a competitor is achieving higher customer satisfaction ratings, benchmarking can help identify the specific practices that lead to such results, allowing the company to adapt and potentially outperform the competition. Thus, the essence of benchmarking lies in facilitating continuous improvement and helping businesses strategically position themselves in the market.