The Accumulation of Capability Construct – How Business Empires Are Built (Video)

The Accumulation of Capability Construct – How Business Empires Are Built (Video)

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 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.

To rise to the level to extract Conglomerate Tax on nations and citizens, capabilities matter. Amazon taxes the digital economy through Amazon Web Services. Dangote Group taxes Nigeria because it solves problems which few can imagine. For solving those hard problems, the firm demands special treatments in different ways from the government. What it does is typical: Amazon, GE, and global conglomerate live on that.

It is not Dangote Group’s fault; it is simply Nigeria’s fault that it has only one true (industrialized) conglomerate in the 21st century.

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One thought on “The Accumulation of Capability Construct – How Business Empires Are Built (Video)

  1. It was Oliver that once sang, “Agbara aka na azo ani, onye ji ihe ana e tinye na ani”. Loosely translated as, if people are dragging farmland empty-handed, anyone with farm implement and seeds will be farming first. That’s literally our case with Dangote, nature abhors vacuum, so while most of his compatriots are waiting for the government to make things right, so that they deploy capital, Dangote is already there with his hoe and seeds, farming relentlessly.

    What is not possible is for the government to press pause button and then ask every business person to be ‘on your mark’, government is yet to even purchase the button, let alone pressing it.

    We still have lots of challenges at the upstream, each requiring massive deployment capital, and in return you enjoy your own conglomerate tax. But if you expect the government to give out the money to entrepreneurs, or create a good environment first, the wait will be very long, because the government is equally broke and bereft of ideas too.

    To enjoy special status or privilege, you must first put yourself forward, deploy the capital, and government will then know that you actually exist; you can be subsequently get invite to eat on the same table with Dangote.

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