Benchmarking: A tool for gaining competitive advantage: (A Case Study of Xerox)

Measuring performance against a recognized business excellence or quality framework can deliver a range of benefits for firms. It is pivotal to a firm to know one's own standard and compare it against others in today's complex and competitive corporate environment. Benchmarking is a technique for assessing a firm's performance against the performance of other firms. It is used to find the best practice and to take necessary actions to improve the firm's own performance so that it meets or exceeds that of its competitors. Benchmarking is an effective management tool to identify changed ideas and brings changes to achieve continuous improvements in the way an existing activity, function, or process is performed. It is basic to strategic business process improvement and reengineering. In employing this method, a company compares its performance with its strong and more successful competitors in the industry. It helps a company not only assess its current performance relative to other companies, but also learn from others and generate new ideas, methods and practices to improve its functioning. Thus, productivity and cost reduction can be enhanced and new performance targets which are practical and achievable can be set to give itself a competitive edge.

The paper highlights the significance of using benchmarking as management tool for quality improvement in organizations. The paper describes an overview of benchmarking and the case study how Xerox benchmarked its operations to achieve customer satisfaction. The paper states the sets of indicators that are used on a regular basis and the methods of benchmarking. The paper points to results and success and to problems that occurs in the benchmarking process. The paper provides useful information for organizations with existing competitive advantage and helps to find adequate methods for different purposes.