Aliko Dangote, Africa’s richest citizen, is a genius in mastering what it takes to move from a sectoral downtime to the upstream. He enters a sector, he begins the Accumulation of Capability, and systematically moves away from everyone. As soon as he does that, he takes industry leadership, making entry barriers harder, with economies of scale. Over time, he perfects that system, delivering higher productivity and economies of speed. His margin skyrockets, every other person struggles – most exit. He has won. In this videocast, I explain the Dangote strategy and what you can learn from it. A former trader, he now controls the largest conglomerate in West Africa, generating excess of $3 billion and employing about 30,000 people; he shows how wealth is built.
On this link, we present a case study of a company that actually defeated Dangote Group in its noodles business, to illustrate how to do it, and make that wealth.