By: Carla Szteinberg, Ana Garcia and Rosibelle Hiraldo
1. Does Catatech currently have a sustainable competitive advantage? Why/why not?
Competitive advantage is the differences that a company has that cannot easily be matched by other companies. Therefore, we believe that Catatech does not have a sustainable competitive advantage because as the book states, “Timing and technology alone will not yield sustainable competitive advantage.” Nevertheless these two factors do help the company improve their competitive advantage; “it’s what the firm does with its time lead and technology.” Catatech has not fully entered into the world of e-commerce, which is why we suggest Catatech to take a risk and invest more in order to regain more profit in the future. …show more content…
So far, the ERP package is the most recent technology implementation this company and has greatly helped Catatech with lowering inventory costs by more than 20%. This implementation supported sustainable competitive advantage but as technology has been evolving, not so much. However, Marisa still thinks that the organization needs to push forward by adding electronic commerce to the business since that has been a big interest in the main marketing organization in Madrid. Staying ahead of technology is the main key for a sustainable competitive advantage.
3. How can the resource-based view of competitive advantage be applied to Catatech? Clearly identify their resources and how they are current applied.
Catatech has several resources as all companies do. One of them is the sales force of people it has. For example, the sales representatives of the company were once electricians themselves, which provides better feedback, support, and customer experience to its customers. Having this knowledgeable work force combined with electronic commerce would improve the company’s performance, which would increase their competitive