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
Competitive advantage has become an important part of doing business and staying in business because it’s what sets a business apart from its competitors. According to Aghamirian and Dorri, (2015) “Competitive advantage is a concept based on economic theories on competitiveness of organizations, emphasizing their particular value in resources that they dispose of, as well as the products and services offered in the market” (p. 65). The competitive analysis will help CanGo standout from its competitors, develop points of difference, recognize competitors, and reevaluate core competencies. CanGo’s major competitors are Amazon, Apple, and Walmart. Each company shares the market of selling books, CDs, music, and movies.
B. Explain one competitive advantage that the company will gain by offering these new products and/or services to a global market. The competitive advantage that HG Clinic would obtain from these two services would be to offer a product that no other clinic was offering in that location. HG Clinic is offering product leadership with these two services. HG Clinic will be known for innovation and high-quality in the industry.
• Don’t induce fear through an individual or store performance indicator. • Give better commission rate during slow hours to balance the SPH. 2. Re-orient the middle management: I would say that the lack of communication between the top and the middle management is one of the primary reasons for these issues being created.
When an organization seeks to be competitive, they typically seek to gain a sustainable competitive advantage. Every organization seeks to gain a competitive advantage, but maintaining it is harder even still. For Bob’s supermarket, the invasion of franchised organizations, along with higher employee wages and rising product cost, Bob and Sam Thompson needed to employee a strategic change that defined where they intended to move the organization in the future and what avenues they would entertain to reach those goals. Bob was admitted less interested in the marketing and human resource side of the business. In reference to marketing, Bob needs to understand, “increased internal pressure to make marketing accountable, combined with market
From the case it is evident that Cisco’s ERP implementation was a success and the following are the success factors 1. Organizational structure – ERP implementations are relatively smoother in centralized organizations than in decentralized ones. Morgridge, Cisco’s CEO, maintained a centralized functional organisation – manufacturing, customer support, finance, HR, IT and sales organizations were centralized. Hence for Cisco it was more of software replacement than change management (compared to the kind of resistance to ERP and accompanying standardization in decentralized organizations).
In case, the demand fluctuates suddenly we adjust the supply by transporting our excess inventory or take some inventory from other distribution centres where sales are comparatively less. Tesla faces a rush order situation mostly in around festival time. To decrease the lead time, transportation costs and the excess inventory company have decided to invest in efficient and cost effective warehouses.
Costco’s business model is centered around offering a smaller range of products at incredibly low prices which attracts the consumer. In order to supplement this lowered profit margin, they require their shoppers, both businesses and individuals, to purchase annual memberships. The membership fee accounts for a majority of the company’s profit. Furthermore, Costco operates its under a wholesale warehouse style which eliminates the need for excess handling and workers in the store. The stores are stocked to carry certain big ticket, ‘limited time offer’ goods so that customers feel the need to take advantage of the deal because it may not be there when they next return.
I. Introduction Goggle replaced Yahoo, and Yahoo replaced AltaVista and other search engines. These are examples of how fast new players may take over sales in a certain categories on the market. Since 1990s, the market has leaders and innovators that are winner-take-all concentrated, and focused on taking over the market. Competitive advantage is being run for and more companies are investing in IT in order to reach quality and quantity of goods and services. They are replacing their operating models by using Internet and new software’s.
Now, like any other company out there in the corporate world, they all come across a point in business where they face a competitive situation, due to either their product line, pricing, or their financial system. According to our
Firstly, a dominant CEO could be one of the possible factors triggering the unexpected collapse of DSE. According to agency theory, CEO is considered as an agent of the board and shareholders (Gallagher & Bennie, 2015), thus his decision might not maximise the principles’ interest (Rankin, Stanton, McGowan, Ferlauto, & Tilling, 2012, p. 190). Nick Abboud had successfully operated the company as can be seen from the 2014’s results (Dick Smith Holdings Limited, 2014). At late 2015, the decision of excessive discounted price during Christmas sales was made in order to boost sales growth (Rose & Hatch, 2016), and this plan was unable to generate the needed cash (Papadakis, 2016). It could be explained by Hamilton (2006) that the board becomes complacent from being allured by CEO’s previous success; thus, Nick Abbound might become a major part of making-decision process and could lead the company to the
3.2 Industry conditions (Porter 's Five Forces Analysis) Five forces which would impact an organization 's behavior in the market. Understanding the nature of these forces provides organizations the required insights to enable them to formulate the appropriate strategies to be successful in their market (Thurlby, 1998). 3.2.1 Threat of new entrants (high entry barriers) High capital investment for competitor entry into telecommunication industry. Companies in this industry maintain development, spend fairly large amount of capital on network equipment and incurred high fixed costs. Besides, technologies are also considered as barriers for new companies to enter the market.
Additional, they were lack of communicate and lack of understandable roles. They were lack of control environment that they did not assign a good duty of segregate for each level. The company just focus on solving extreme high risk problem and ignored the expert advices, demonstrated by Tony Hayward. When the disaster appeared, the board is lack of oversee in operation, had a slow reaction on solving. This failure is resulted in inconsistent of organizational culture.
The value proposition of IT to business organizations are enormous, but to benefits from IT an organization has to succeed in integrating IT with the business strategic objectives. To do this, the organizations have to develop its IT architecture capabilities which will serve as an enhancer in evolving the enterprise IT architecture before the firm can realize this value from IT. Yes, the company should have risk mitigation strategies for the standardized technology architecture stage because while firms move from the application silo stage, they carries along some of the problem that they were facing to the technology standardization stage. The application of specific-data is one problem facing the standardized stage which has to be managed