Benchmarking for Failure


 I was reading Don’t Let a Spreadsheet Decide Where You Locate Your Business  by Alessandro Di Fiore

Quote I found Interesting

In quest of excellence companies benchmark with the leader in the industry.  Soon we find all the companies are doing same thing. No2 benchmarking with No1, No3 with No2 and so on…  In a stable industry this goes and eventually all the companies end up doing the same thing. The business models become similar. The differentiation erodes and the prices fall.

 

Why should you read the same

If you are in a company which constantly benchmarks and follows rather than putting resources to innovating

Unanswered Questions after reading the article

  1. Will this result into consolidation , Since companies with poor margins will get out / acquired .
  2. What to do when the product / offering is commoditized .
  3. At this stage does the industry require a new business model / disruption .



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