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Catatech's Competitive Advantage

1187 Words5 Pages

Does Catatech currently have a sustainable competitive advantage? Why/why not? Catatech currently does not have a sustainable competitive advantage. This is so because they still have that old school mentality regarding business. There have been a few restraints such as implementing electronic commerce. The board and the CEO, Carlos Fernandez will need to be educated on how important e-commerce is on the future of their organization and how it can sustain competitive advantage. Since there is no official e-commerce initiative, Catatech is at a disadvantage in our current business market. Also, the little disagreements between Marisa and Carlos can also slow down any chances of implementing the strategy; Carlos just wanted the Board to make …show more content…

According to the Information Systems textbook, chapter 2; If a firm is to maintain sustainable competitive advantage, it must control an exploitable resource that have four critical characteristics. These resources must be valuable, rare, imperfectly imitable and nonsubstitutable. Catatech has the resources of the US website which does not requires much changes; this gives Catatech a head start as they could use it for a global initiative. Over the years the company has also shown that they have been successful when achieving their objectives as they made up to about US $2 billion in revenue after a few years of struggle; such resources can quickly turn around Catatech’s e-commerce strategy. Also, Marisa Rivera who is the company’s CIO implemented Catatech’s selection of an ERP to use this technology as a platform for a successful company’s global chain. This reduced the company’s inventory costs by over 20% which improved delivery …show more content…

Implementing the e-commerce will require Catatech to have formal IT to take an increase in demand and this will fail in Catatech seeing that the communication within the corporation is very poor. We believe Catatech should have the new IT system before strategy implementation in order to get better results. Implementing a new strategy without the proper IT can affect the current ERP system of the company due to incompetent use of the company’s resources. The new IT system will make it easier for Catatech to implement a

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