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Accumulate And Compound Your Capabilities – Go Upstream And Capture More Market Value

Accumulate And Compound Your Capabilities – Go Upstream And Capture More Market Value

Firms win by accumulating capabilities. From Google to Dangote Group, when companies accumulate capabilities, they operate in domains that generate higher value (usually upstream) compared with where most typical firms operate (usually downstream). Dangote Group can deploy massive assets and technical know-how in cement production, making it harder for new entrants and rivals.

Google uses its datasets to win on search. By holding the first-scaler advantage on search, it enjoys the virtuoso circle of network effects which keep compounding, generating new leverageable factors which keep making Google better.

Make a business resolution: I will accumulate and compound my capabilities. You need capabilities to create products and services which are forces required to overcome frictions in markets. Markets reward through revenue when companies fix frictions.

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1 THOUGHT ON Accumulate And Compound Your Capabilities – Go Upstream And Capture More Market Value

  1. Some are waiting for the ground to be watered, before they can deploy their assets and capabilities. The problem is that once the ground is fully watered, they might not stand a chance, because those waiting on queue are too many.

    To accumulate capability and capture greater value, you have to be part of the ground watering, because those who water the ground end up making the rules. It has always been that way.

    Both treating equals as unequal and those of unequal as equals amount to injustice, you cannot be late to the party and expect to enjoy red carpet moments; the train has moved.

    To own your space, you have to bring new solutions on the table or rethink existing solutions that are suboptimal; playing in crowded space will not make you exceptional.

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