To win big in Nigeria, you must be among the category-kings. Why? ICT is rapidly moving Nigeria towards knowledge-based economic structures and information societies, comprising networks of individuals, firms and states that are linked electronically and in interdependent relationships. This linkage has enabled new classes of companies to emerge, with better marginal costs, as they utilize factors of production more efficiently.
The acceleration of returns and the virtuoso circle of network effects are working across sectors. MTN is becoming more dominant. The FUGAZ banks have built moats for the second tier banks which remain frozen with limited mobility. Yes, even in cement, it is the same thing.
The most magical thing digital technology does is the removal of information asymmetry and that brings demand and supply into a more optimal equilibrium point. Within that state, markets become more efficient. Unfortunately, most times, the category-kings capture more value because everyone knows that they are better!
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Depending on what you do, this could be a time to explore partnerships, join ventures and mergers. You must win on unit economics to thrive in Nigeria as natural moats, via scale, are becoming more dominant.
To become an enduring category-king in your business sector, you must possess these four characteristics. With these four features, the firms build moats to protect their castles.
- Perceptively innovative: you are always innovating. You never rest, always pushing for better products, services and experiences. You outperform competitors with new solutions for unmet needs.
- Evidently inspired: you inspire your users. You are modern, trustworthy and inspirational, you have a larger purpose, helping people live out their own values and beliefs.
- Ruthlessly pragmatic: your customers depend on you and you have their backs, making life easier by delivering consistent experiences. You make good on your promises.
- Customer obsessed: customers cannot imagine living without you. You know what matters to customers, finding new ways to meet their most important. needs.
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It doesn’t look like we have anything close to category-king companies here then, if they are to be judged by these characteristics.
Our environment can be linked to an average boy taking first position in his village school, where his other competitors can barely read and write, so to them, he’s supremely intelligent.
We are yet to start building companies that inspire and charm, so for now, let’s keep hailing the ones carrying first among their non competitive rivals.
Time will take care of everything.