Leading entrepreneur, Mehrzad Ferdows believes “sustainable competitive advantages” are instrumental in the sustainability and growth of organizations.
Mehrzad Manuel Ferdows was giving this speech to young graduates at a workshop in Dubai, UAE.
“Competitive advantage of any kind can be sustainable or temporary in terms of competitive performance. It can be said that the more obvious and simple the features of competitive advantage, the more potential it has,” said Mehrzad Ferdows, who is also an advisor, investor, and Industrial Engineering graduate from the University of Southern California.
“Nevertheless, if a company has an innovative innovation-oriented organizational culture and high market-oriented innovation capability, it can, first, intelligently take advantage of its pre-existing features and enhance its positional advantage, and secondly, can create something new and always leave competitors behind before they gain a temporary advantage,” he added.
He then drew a comparison between “temporary” and “sustainable” competitive advantage in his speech.
“In contrast to the temporary competitive advantage, there is a sustainable competitive advantage, which is firstly long-term and not transient, and secondly is not easily accessible to competitors,” Ferdows noted.
“In general, it can be said that sustainable competitive advantage has characteristics such as durability, high defense capability, good tolerance, high bioavailability, high support capability, high acceptability, justifiability, and good persuasiveness,” he explained.
Ferdows Mehrzad Manuel then added that sustainable competitive edge also has considerable bargaining power, “which, of course, in proportion to the intensity and strength of stability, will have the competitive advantage of all or some of the above features,”
“In different areas of the slow market, the word ‘sustainability’ will be more competitive depending on its offensive capability. One expert considers the ability to sustain a competitive advantage with the dimensions of longevity, mobility, and reflectivity,” Mehrzad Manuel Ferdows explained.
“Longevity is expressed in terms of the ability of competitors to imitate or obtain resources that create a competitive advantage and indicates a sustainable competitive advantage. It is basically related to a large number of sub-collections and has a dynamic nature,” he added.
“Each dimension of competitive advantage sustainability depends on the nature of the strategic task at different levels of the organization and therefore sustainability is considered as a dynamic process instead of a static concept. Therefore, it can be said that sustainable competitive advantage is not a destination with a certain distance. Rather, it is an endless journey that continues depending on the traveler’s ability and goals,” Ferdows noted.
Mehrzad Ferdows Remarks on temporary and sustainable competitive advantage
Elsewhere in his remarks, Mehrzad Ferdows reiterated that the “temporary” and “sustainable” competitive advantage are interconnected.
“Another important point is that there is a relationship between a temporary competitive advantage and a sustainable competitive advantage so that sometimes a sustainable competitive advantage is obtained from the sum of a number of temporary competitive advantages,” said the entrepreneur.
“In the computer industry, for example, Intel’s dominance of the low-cost PC market has been achieved by creating a set of temporary advantages that further create a new advantage and launch a new product based on it, resulting in competitors using imitation and copying to start a new business to gain a new advantage, and this has been the secret to Intel’s continued competitive advantage in the cross-competitive computer industry over the past two decades,” Ferdows added.
However, Manuel Ferdows explained, competitive advantage may be lost under certain circumstances.
“A competitive advantage is lost in various ways, including threats of competitive imitation, negligence or misconduct of the company, replacement, unforeseen environmental changes, government laws and regulations, and so on,” he said.
“Therefore, only a few of the competitive advantages remain stable, and most of them are eroded and destroyed for the above reasons and other reasons,” Manuel Ferdows Mehrzad noted.
Therefore, the entrepreneur said, it is necessary for companies to set the stage for the potential benefit and excellent long-term performance while trying to maintain a sustainable advantage and use it properly to strengthen and develop a competitive position.
“In this regard, direct advantage refers to the type of advantage that directly affects the creation of competitive values of the organization while indirect advantage plays its role by using intermediate factors,” he concluded.