“To succeed in business, you must build a brand and never destroy it. One competitive advantage I had when I ventured into manufacturing was my brand ‘Dangote,’ which I diligently built in the course of my trading commodities.” – Aliko Dangote
From “The Dangote System: Techniques for Building Conglomerates” by Ndubuisi Ekekwe.
Begin reading here.
Anthony Christopher Nwosu No issues. You do not need to agree with me. And of course, I was not asking for that. I am simply putting our constructs based on my understanding. My thesis of Dangote System is that it works in Africa, whether executed by Dangote or anyone. Dangote lost to Indomie Noodles, lost in Lead Merchant bank, lost in Dangote capital and many firms. If getting govt help was that all he uses to win, he would have a 100% strike rate. In 3 decades, he won battles and lost many.
But a time came when he won and he gave govt his terms. Ethiopia pays his electricity bills to have him. When you solve BIG problems in economies, govt “serves” you. Amazon HQ2 began a competition for who will give Amazon the highest tax waiver. Boeing gets $100M from WA state to stay in the state. All conglomerates get favours because they operate UPSTREAM.
Amazon received tax waivers for HQ2 because that was all it wanted. Amazon is a conglomerate. Every conglomerate gets governments to serve it because it operates upstream. “Aircraft maker Boeing says it wants to end a $100-million tax break it gets from its home state. The World Trade Organization says the tax break Washington state gives Boeing violates its rules. The WTO restricts government support for exports.Feb 24, 2020” https://www.wltz.com/2020/02/24/boeing-asks-to-end-100-million-tax-break/
If you call it corruption, just do not have Dangote Group alone, have all Fortune 500 Global which are conglomerates!
“Dangote enjoyed the Monopoly of a corrupt system” Not really. Dangote rose into a conglomerate from trading and began to tax Nigeria just as Boeing, GE, Amazon tax America, It is called conglomerate tax where they tax economies they work. Tell me how many companies in U.S. got tax waivers like Amazon for HQ. Tell me how many get $100M like Boeing gets yearly from WA state. These things are common, GLOBALLY, when you evolve as a conglomerate.
“New Jersey Offers $7 Billion Tax Break for Amazon’s HQ2 … tax abatement valued at about $1 billion, and a city wage tax waiver also valued at about $1 billion” http://seattlebusinessmag.com/business-operations/new-jersey-offers-7-billion-tax-break-amazons-hq2-0 . That is conglomerate tax. They tax economies to serve economies. It is GLOBAL. That is $7 billion but that was not enough for Amazon.---
Click to join Tekedia Capital and build Next Africa with min of $10,000 co-investment in startups.