Benchmarking involves

comparing how different companies perform various value chain activities and then making cross$-$company comparisons of the costs and effectiveness of these activities.

checking whether a company has achieved more of its financial and strategic objectives over the past five years relative to its direct competitors.

studying whether a company's resource strengths are more$/$less powerful than the resource strengths of rival companies.

comparing the best practices in one industry against the best practices in another industry.