Global / How to Use Industry Research
The Importance of Industry Benchmarking
by IBISWorld
Oct 21 2019

How does your company measure up against its competitors? How is it performing against the industry average? More importantly, how do you accurately assess your performance? Industry benchmarking.

Benchmarking is a systematic process that identifies best practices, whether from your competitors or similar industries. It allows for detailed comparisons between companies and industries, so you can more easily analyze your successes, failures and areas needing improvement.

While there are several types of benchmarking (i.e. informal and formal), there are also many different comparison measures that go into benchmarking (i.e. financial or non-financial). However, perhaps the three most important performance measures are listed below:

  1. Overall performance of an industry

  2. Influence of external factors

  3. Cost allocations within an industry

Get the full picture

The performance of an industry is always influenced by factors outside of your control. That’s why industry benchmarking is so important – it gives you a better understanding of what those uncontrollable factors are so you can best manage them.  This empowers you to keep your business ahead of the competition and helps you know when to adjust your strategies.

Our data helps you to understand the broader operating environment and examine the patterns for deeper insight. My IBISWorld allows you to manipulate the data by removing factors to gain a better understanding of their influence.

 

Assess the external environment

IBISWorld helps you identify and gain information on the external factors influencing your industry. However, the introduction of My IBISWorld takes a more interactive approach by letting you compare each external driver against one another, giving you better insight on its influence on the industry and a greater awareness of how those influences interact and affect each other.

 

Quickly identify influential external factors and gain an understanding of how they’re driving industry revenue and forecasts.

 

Examine the competitive environment

My IBISWorld also provides historical time-series data for industry costs and major players. Understanding how costs have changed over time helps put your own company’s performance into perspective.

Understand the breakdown of cost structures and use the associated analysis to determine current trends and recent changes.

 

The major player data series allows you to see trends in your competitors’ performances over time. 

Determine the dominance of major players and leverage case studies for more in-depth insight into industry performance.

 

With its fresh, innovative format, My IBISWorld can help you visualize the full picture of an industry by comparing its current performance, competitive environment and external drivers and their influences over time.

My IBISWorld aims to help you find the right answer in the right format. We’ve made many enhancements to help us reach this goal and better meet your needs. To see the new changes in action, book a live demonstration now