What is a key benefit of benchmarking in BSG?

Benchmarking in the context of the Business Strategy Game (BSG) serves as a crucial tool for assessing a company's competitive performance relative to its peers within the industry. The identification of performance gaps against industry leaders is central to this process. By comparing key performance indicators—such as profitability, market share, and operational efficiency—against those of the top-performing companies, a business can pinpoint areas where it may be lagging. This insight enables companies to implement targeted strategies aimed at closing these gaps, thereby improving their overall competitive stance.

Moreover, understanding the benchmarks set by industry leaders promotes a culture of continuous improvement. Companies can adopt best practices and innovative approaches that have proven successful for others, which can lead to enhanced operational performance and market position. Ultimately, effective benchmarking not only highlights where a business stands but also informs strategic decision-making, helping to align operational efforts with industry standards and consumer expectations. This is why identifying performance gaps against industry leaders is a key benefit of benchmarking in BSG.