Question

Cartech Inc. is a manufacturer of automobile parts, which it sells to retail auto supply stores. Its core competencies include superior design and engineering capabilities, as well as a highly integrated and efficient supply chain. To sustain its competitive advantage, Cartech should first________.

Answer 1

Answer:

Cartech should first Improve the department of engineering and its supply chain.

Explanation:

It's competitive edge has always been superior design and engineering capabilities which are good qualities in an automobile manufacturing company. The best way to stay ahead of the competition is to boost that edge it already posses .

Answer 2

Answer:

C) upgrade its engineering department and improve its supply chain.

Explanation:

The whole concept of core competencies is that they are positive traits that distinguish a company from its competitors. But core competencies can turn into core rigidities if they are not updated continuously.

For example, the core competency of Kodak was its photographic film, but as technology and digital cameras (and then cellphones) became widely used, very few people needed photographic film. By insisting on its core competency, Kodak turned it into a core rigidity that finally made it go bankrupt.

If Cartech wishes to sustain its competitive advantage, it must continuously improve its core competencies. In this case, it must do it by upgrading their engineering department and improving its supply chain.