QUESTION

Company A has used performance benchmarking to compare its product X with the competitors product Y and found out that the product X is priced slightly lower, but it also has fewer features than product Y. The company recognized that in order to win a larger market share and establish itself in the market, it has to increase the number of features in its product while keeping the price at the same level or even decreasing it. To achieve this, the company A has set up a team that investigated product X value chain analysis. The team identified that the activities adding the most to the cost are marketing and purchasing parts in an open market. The team also identified that by buying standards parts in the market, the company has little room to introduce new features as this would require customized parts for its product X. The next step was to assign the proper metrics to marketing and purchasing activities and gather the required data. The company joined the benchmarking network and in a few weeks gathered enough data to compare the performance of its processes.

In view of the above scenario, critically discuss benchmarking as mechanism of improving the quality and the standards of the product offering. Should one has to adopt any Benchmarking Strategies, what should be one's approach in developing the Benchmarking Strategy that provides the impetus for quality enhancement? Use theory to enhance your research-based answer to the above practical case. While presenting you are expected to quote industry players that have engaged in the path to enhance your argument.