The Dangote Group is legendary for acquiring, developing and unleashing capabilities across many domains in markets. Through those capabilities, it has won territories. Interestingly, anyone can master and replicate those playbooks, as I have written in my book – The Dangote System: Techniques for Building Conglomerates..
In this piece, I explain how the makers of Indomie noodles used the same strategy the Dangote Group has been using for decades to win. And at the end of the day, they defeated Dangote Noodles.
When Dangote Noodles entered the market and unleashed its competitive high-voltage playbooks, Dufil Prima Foods (makers of Indomie) did not blink.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Why? Those things Dangote Group does, from internal electricity generation to logistics, have been done in the noodles business by Prima, making it nearly impossible for more efficiencies to be extracted. With no left inefficiency which Dangote could exploit to improve quality and reduce price, Indomie Noodles held its ground when the competition came. Yes, Indomie won – and Dangote Group later sold its noodle business to the makers of Indomie.
Big lesson: accumulating and compounding capabilities will not just help you unlock new markets but will also help to defend your territories. Sure, you have to be loaded to take on Dangote, but the fact remains that moving upstream, from downstream, in the pursuit of capabilities in markets, will deliver alpha, not not in the bank account, but also in market share. Watch these videos to understand my Accumulation of Capability Construct, and a strategy to win in markets. Deploy your #capabilities in 2025.
---
Register for Tekedia Mini-MBA (Feb 10 - May 3, 2025), and join Prof Ndubuisi Ekekwe and our global faculty; click here.
