Which method is used to measure business performance against competitors?

Benchmarking is the method employed to measure business performance against competitors. This process involves comparing specific metrics, processes, or practices of an organization to those of leading competitors or best-in-class organizations. It provides insights into the standards and performance levels achieved by others in the industry, allowing a business to identify gaps in its performance and areas for improvement.

Through benchmarking, companies can analyze various aspects such as quality, cost, delivery, and service, enabling them to understand their position relative to competitors. This information is crucial for strategic planning and can help drive improvements and innovations that will enhance overall competitiveness.

In contrast, the other methods mentioned do not focus on directly comparing performance with competitors. Time series data refers to data points collected or recorded at specific time intervals, useful for trend analysis but not for direct comparison. Cost analysis involves evaluating and analyzing costs to identify cost-saving opportunities, while variance analysis compares budgeted and actual performance but does not focus specifically on competitive positioning.