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Explain the Benefits of benchmarking
- Better understanding of business, competition and customers.
- Improves business performance and discourages complacency.
- Good way of comparing competitive strategies to reposition products.
- You can learn from other organisations mistakes.
- Youdo not need to 're-invent the wheel 'for innovation and creativity for example learn from other organisations and a source of new ideas.
- Advance warning for deteriorating competitive performance for instance faster awareness of industry innovation and other competitor decisions.
- Fewer complaints, product returns and warranty claims for example quality improves.
- Leaner and more cost efficient organisation.
- Brand loyalty and Customer satisfaction increases.
- Sales and profitability will improve in long-term.
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decision criteria of profitability index.
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