Competitive benchmarking technique for “the followers”: a case of Ukrainian dairies

Abstract

Purpose

The paper is devoted to develop the methodological technique for the implementation of competitive benchmarking in an industrial company in strategy of “the follower”. The paper aims to discuss these issues.

Design/methodology/approach

In the research, a non-parametric methodology of efficiency analysis is used. To solve the problem of finding the best competitor, the author proposes to apply the method of free disposal hull (FDH).

Findings

The proposed methodological technique for the implementation of competitive benchmarking in an industrial company in strategy of the follower enables to gradually develop and make informed strategic decisions that ensure the achievement of efficiency frontier and a leadership in its market segment.

Research limitations/implications

The research is limited by a single industry (dairy products). This is explained by requirement of technology (product, service) homogeneity when using FDH model.

Practical implications

By a case of 60 Ukrainian dairies, the paper demonstrates how the author can use the proposed technique in a practice and what steps the author should make to find company benchmark and improve the efficiency. It is possible to use the results of this research to make competitive benchmarking for the other industries.

Originality/value

This paper adopts FDH model for competitive benchmarking and implementing the strategy of the followers. The proposed technique enables to improve the various activities of the analyzed dairies.

Citation

G. Goncharuk, A. (2014), "Competitive benchmarking technique for “the followers”: a case of Ukrainian dairies", Benchmarking: An International Journal, Vol. 21 No. 2, pp. 218-225. https://doi.org/10.1108/BIJ-04-2012-0027