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info@DurableCompetitiveAdvantage.com _______________________________________________________________ “spending hundreds and hundreds and hundreds of billions of dollars every year for oil, much of it from the Middle East, is just about the single stupidest thing that modern society could possibly do. It’s very difficult to think of anything more idiotic than that.” - R. James Woolsey, Jr., former Director of the CIA
Support Domestic Oil and Gas Production
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Durable
Competitive Advantage
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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."
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.
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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What
is a Strategic
Competitive Advantage?
A company
with a strategic competitive advantage consistently outperforms their
competition through its strategic competitive advantage(s) which is that
company's unique value proposition wherein it produces better products or
services than anyone else.
About Us
We assist energy and renewable energy companies secure investments and capital. Companies we would be interested in assisting have superior business models and products (or services) as well as exceptional management teams.
Our Investment Criteria Includes the Following:
Capital for funding the growth of existing businesses, including:
management–led buyouts
acquisition financings
minority recapitalizations.
What
We Look For:
1. Superior Management Teams:
The present management team must have a proven record of achievement, exceptional ability, unyielding determination, and unquestionable integrity.
We believe it is best to leave control with current the present owners and/or management team so that they can focus on their products/services, customers, employees and shareholders well for the long term.
2. Investment Size: $5 million to $25 million of equity capital.
We may partner with other investors or venture capital firms larger transactions.
3. EBITDA: Near–profitable to $10 million.
4. Growth: Historical growth of at least 20% per year which is sustainable into the future.
5. Market Size: Growing rapidly or large enough to allow company to achieve $100 million in revenues.
6. Industry: Renewable energy industries with an emphasis in solar is our primary focus.
7.
Location: Southwest, South and Southeast U.S.A.
We seek to make investments for at least 6 to 7 years and provide "patient capital" for sustained
growth and to assist our portfolio companies in succeeding.
Our initial equity investment size presently ranges from
$5 million to $25 million.
PLEASE NOTE: We will NOT consider any investment in any of the
following:
startups
publicly traded companies
real estate developments of any kind
project finance or funding opportunities
oil and gas exploration companies (oil and gas production companies acceptable)
troubled companies
turnarounds
any company where senior management is departing.
If you have a business and financing need that meet the criteria above, we would be pleased for you to contact us regarding your financing need. Please send a complete executive summary to us at: info@RenewableEnergyInvestments.com
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America's "Clear and Present Danger"
America
Has INCREASED its' Dependence on Foreign
Sources of Energy by 50% Since 1973.
America
is even more "addicted" to foreign oil today, than we were in 1973 -
1974 when OPEC, Saudi Arabia and other suppliers from the Middle-East
stopped selling us their fossil fuels, and created a significant blow to our
economy.
According to the CIA Fact Book, Every Day, the U.S.:
PRODUCES:
7,460,000 bbls of oil (within its borders)
CONSUMES:
20,800,000 bbls of oil
This
Means that 65% of America's Energy Supplies are Now Imported from Suppliers
from Foreign Countries.
Simply put, about 65% of the gasoline in your car's gas tank, comes from a foreign country.
EVERY day, the U.S. must IMPORT over 13 million bbls of oil from foreign countries and foreign suppliers to meet demand.
At
$80/barrel of oil, this also means that $1,040,000,000.00 American Dollars leave
our country, EVERY DAY, to foreign countries/suppliers of our fossil fuels, to
pay for the energy we need.
That's
$1 Billion EVERY day leaving our economy, and going to support a foreign
country's economy.
Talk
about our foreign trade deficit..... nearly $400 Billion each year, leaves our
country to pay for our oil addiction and the energy we need. To be exact,
that's $379,600,000,000.00 American Dollars.
This is NOT acceptable.
America needs to quickly transition to Energy Independence.
Renewable Energy is the Only Way America Can Achieve Energy Independence.
Millions of new and sustainable American jobs would be created here at home, if we would end our addiction to foreign fossil fuels, and quickly transition to an economy based on renewable energy and renewable fuels, produced here in the U.S.A.
The good news is that today, America already has all of the Renewable Energy Resources and Renewable Energy Technologies needed to make American Energy Independence a reality.
According to Monty Goodell, Founder and Chairman of the Renewable Energy Institute, "our increased dependence and reliance on foreign energy supplies represents a Clear and Present Danger to our national security, our economy, and the lives and livelihood of every American. Energy - including the energy we use from imported fossil fuels, is the very "lifeblood" of the American economy as it is for every industrialized country. An economy dies without it's lifeblood of energy. This Clear and Present Danger we face is far more serious than the problems related to greenhouse gas emissions. And while greenhouse gas emissions are very serious issue, in the long-term, pales in comparison to America's vital national security interests and America's economic stability in the short term. For this reason alone, America needs to transition away from its addiction to foreign energy supplies. And America's abundant renewable energy resources such as the energy we receive from the sun, and renewable energy technologies such as concentrated solar power (CSP) plants - can supply 100% of America's power requirements with a concentrating solar power plant measuring 75 miles by 75 miles, located in the Southwest U.S. By generating America's power from concentrating solar power plants, America resolves its' short-term Clear and Present Danger as it relates to importing its energy from foreign countries, and the long-term problems relating to greenhouse gas emissions."
Continuing, Mr. Goodell states that "too many Americans have forgotten what happened to us in 1973, when the Arabs and OPEC brought the United States economy to a screeching halt during the OPEC Oil Embargo. This happened because they (mainly the country of Saudi Arabia) disagreed with our foreign policy and is the reason why they "turned off the tap" of our need for their oil supplies. When Saudi Arabia and OPEC stopped the vital flow of oil to our country in 1973, they caused an "oil shock" that severely and negatively impacted our economy.
Mr. Goodell's question for us to ponder is, "do these countries who sell us 60% of our daily energy requirements, like us and our foreign policy, or might they leverage our addiction to their fossil fuels, and turn off the tap to make us adjust or revise our foreign policy?? Like any addict, America's foreign policy may be held hostage to its addiction, and in this case, our addiction to foreign oil, may over-ride our national interests."
Have
American's forgotten the gas shortages and long lines at
their gas stations to get
gas during the Arab Oil Embargo of 1973?
"Apparently so." Mr. Goodell states that "in 1973, America was 'addicted' and 'over the barrel' of foreign oil to the amount of 40%. Forty percent of our energy 'needs' in 1973 came from countries - many of which didn't like us then, and I'm afraid, many of them still don't. The difference between 1973 and today - is that today we receive 50% MORE foreign oil now than we did in 1973. And now we know about the problems relating to greenhouse gas emissions that we didn't know then. America needs to change course, and change course now, in terms of its' energy supplies and how we keep America's economy strong, without the threat of being held hostage to a middle-east tyrant or regime, that could once again, turn on us, and turn off our supply of foreign oil."
Remember
????
"
Sadly," Monty Goodell continues, " most Americans have forgotten the long lines of people waiting in their cars
- lined up and waiting
for gasoline at their nearby gas station, with lines that were many blocks
long. And, after waiting 4-5 hours, many even waiting overnight in many places, to
finally take their turn to fill up their car with gasoline, only to find that
the gas station
had run out of gas."
"Let me Repeat.... That was 1973 when we imported 40% of our daily energy requirements in the form of crude oil from overseas, and from foreign countries - and many of these from countries that don't like us.
Today, over 35 years later, America has yet to learn the lesson. We cannot continue our reliance on energy from foreign countries that supply us with 60% of the crude oil that our refineries use as a feedstock for producing gasoline and diesel fuel for our cars and trucks comes from overseas.
America is "over the barrel" and it's not our barrel, but the barrels of oil that we are addicted by and owned by other countries. Why have we not learned the lessons we needed to learn in 1973 when we were cut-off from the vital energy supplies we need?
Countries like China, are growing rapidly, and have an insatiable need for crude oil. China, with their booming economy, is increasingly growing in its clout and control over international supplies of crude oil - whether they do this through their ability to buy as much oil as they need on a daily basis, or whether they simply but American drilling rigs, technology, and explore and produce oil and gas from their own fields. China, is buying large amounts of oil for their country, and causing upward pricing on declining supplies. What happens if Russia, with all of their oil and natural gas, along with China and Venezuela, with or without the help of OPEC, decided to NOT sell oil to us????
To be sure, greenhouse gas emissions are a problem, and to some, greenhouse gas emissions are also a Clear and Present Danger, but not to the extent that it presents an imminent Clear and Present Danger.
America's reliance for 60% of our energy "needs" coming from foreign suppliers is un-acceptable.
The "driver" to get America to begin reducing and eliminating fossil fuel use should be our nation's national security and the welfare and safety of its citizens. And this can all begin with developing and investing in our own renewable energy resources and renewable energy technologies, let's start by putting solar on every rooftop that has a clear and unobstructed view of the Southern sky. See www.RooftopPV.com or www.DistributedPV.com for more information. Let's create incentives begin with adopting a national "Feed In Tariff" as Germany did in 1990.
America,
we simply do NOT have the luxury of time on our hands. We need to end our
dependence and reliance on foreign fossil fuels, especially from countries that
don't like us! We need to rapidly begin expanding renewable energy
resources and renewable
energy technologies from our vast and abundant renewable energy resources,
such as; solar, solar energy systems, solar cogeneration, solar trigeneration,
"solar on every roof," waste to energy, waste to fuel, biomass
gasification, B100 Biodiesel, Biomethane, Synthesis Gas, geothermal, E100
Ethanol (from sugar cane and NOT from corn), and wind, where it makes economic
sense."

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We support the Renewable Energy
Institute by donating a portion of our profits to the Renewable
Energy Institute in their efforts to reduce fossil fuel use through
renewable energy and their goals to end pollution from Carbon
Dioxide Emissions and Greenhouse
Gas Emissions.
The Renewable
Energy Institute is "Changing The Way The
World Makes and Uses Energy by Providing Research & Development, Funding and Resources
That Create Pollution Free Power, Carbon Free Energy & Renewable Energy
Technologies

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www.RenewableEnergyInstitute.org
Email: info(@)Renewable Energy Institute (.)org
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