External benchmarking is the process of comparing an organization's performance, processes, or products against those of other organizations, often within the same industry. This practice helps businesses identify best practices, understand competitive positioning, and discover areas for improvement. By analyzing data from external sources, companies can gain insights into how they measure up against their peers. Organizations may use various metrics for external benchmarking, such as financial performance, customer satisfaction, or operational efficiency. This information can guide strategic decisions, enhance productivity, and ultimately lead to better overall performance. External benchmarking fosters a culture of continuous improvement by encouraging organizations to learn from others.