Durable Competitive Advantage
www.DurableCompetitiveAdvantage.com

What is a "Durable Competitive Advantage?"

A durable competitive advantage is also referred to as a "strategic competitive advantage," however similar, they are different.  The two differ in that a company with a durable competitive advantage can go on indefinitely.  Companies that have a durable competitive advantage include Coca-Cola and Hershey's.  The term "durable competitive advantage" has been popularized by "the Oracle of Omaha," Warren Buffet the Founder and Chairman of Berkshire Hathaway as the single-most important asset a company must before his company will make the investment or acquisition. 

To understand what a durable competitive advantage is, we must first define "competitive advantage" which is a position a company owns or occupies against its competitors.

According to Michael Porter, there are three methods for creating a "sustainable competitive advantage."  These include:

1. Cost leadership - Cost advantage occurs when a firm delivers the same services as its competitors but at a lower cost.

2. Differentiation - Differentiation advantage occurs when a firm delivers greater services for the same price of its competitors. They are collectively known as positional advantages because they denote the firm's position in its industry as a leader in either superior services or cost.

3. Focus (economics) - A focused approach requires the firm to concentrate on a narrow, exclusive competitive segment (market niche), hoping to achieve a local rather than industry wide competitive advantage. There are cost focus seekers, who aim to obtain a local cost advantage over competition and differentiation focuser, who are looking for a local difference.

According to Porter, a company's competitive advantage cannot be sustained indefinitely because the promise of economic rents that invites their competitors to duplicate the competitive advantage presently held by that company. 

A company has a sustainable competitive advantage when its value-creating processes and position in the industry has not been able to be duplicated or imitated by their competitors.  Sustainable competitive advantage results, according to the resource-based view theory by Michael Porter, in the creation of above-normal rents in the long run.

Businesses that possess a durable competitive advantage are the ones that can be valued more accurately. 

Successful businesses become successful through in two methods: 

1.  They have the highest profit margins compared with their competition

2.   They sell the highest volume of good or services. 

Businesses that have a durable competitive advantage are likely to be the businesses with the highest profit margins and inventory turnover. 

What is a company's "Competitive Advantage" and How does it become "Durable." 

1. Competitive Advantage - these businesses are the only ones producing a unique product or service. Again, Coca-Cola is a great example.  Unlike price-competitive businesses, price is not the most important consideration for Coca-Cola's customers.
   

2. Durable - To succeed in the long-run, businesses must possess a competitive advantage which must also be durable - or a durable competitive advantage which means the company must be able to keep that durable competitive advantage in the long term - and without needing to expend great amounts of capital to keep it.

Companies that do not have a durable competitive advantage usually spend enormous amounts of shareholder wealth to maintain their competitive advantage instead of returning the wealth back to the shareholders. 

Intel and AMD are rival chip makers and examples of such competing businesses. No doubt they each have their own unique competitive advantages and each with somewhat of a monopoly in the market. But, each has to spend billions of dollars in research and development and continuously develop new computer chips to maintain their own monopoly on their market segments.

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Our "Integrated" CHP Systems (Cogeneration and Trigeneration) Plants 
Have Very  High Efficiencies, Low Fuel Costs & Low Emissions

The Effective Heat Rate is Approximately 
4100 btu/kW & System Efficiency is 92% Plant.

The CHP System below is Rated at 900 kW and Features:
(2) Natural Gas Engines @ 450 kW each on one Skid with Optional 
Selective Catalytic Reduction system that removes Nitrogen Oxides to "non-detect."

Our CHP Systems may be the best solution for your company's economic and environmental sustainability as we "upgrade" natural gas to clean power with our clean power generation solutions.

Our Emissions Abatement solutions reduce Nitrogen Oxides to "non-detect" which means our Trigeneration energy systems can be installed and operated in most EPA non-attainment regions!

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For qualified clients we will design, build, finance, own, operate and maintain a new:

Clean Power Generation

CHP System

Cogeneration

Organic Rankine Cycle

Trigeneration

Waste Heat Recovery 

energy system, through a Power Purchase Agreement that guarantees
a minimum 10% reduction in our client's energy expenses.

(NOTE: Engineering and related interim project development expenses may be at client's expense but will be
refunded at the close of Power Purchase Agreement or other project financing. Some of our engineering
and EPC services may be provided by one of our Top-ranked ENR Engineering/EPC partner companies.)

To receive a preliminary no-obligation review of your energy, engineering or project plans, 
send an introductory email to us at the following email address:

info@PowerPurchaseAgreement.com

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