The Dangote Group is legendary for acquiring, developing and unleashing capabilities across many domains in markets. Through those capabilities, it has won markets and territories. Interestingly, anyone can replicate those playbooks.
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 came and unleashed its competitive high-voltage playbooks, Dufil Prima Foods (makers of Indomie) did not blink.
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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. It is irrelevant if the new competitor is Dangote Group.
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Dangote Group had the foresight and saw that this was a competition that they wouldn’t win.
And even if they did, it would make them look no lesser than the loser.
Of course, it will be at the cost of not exploiting the cement industry, which they had gained traction and is seeing results.
“Dangote Group had the foresight and saw that this was a competition that they wouldn’t win.” – sure, after they have developed a product, spent money, launch a product! We need to acknowledge that if Indomie people did not do their homework, Dangote Noodles will still be in business. My point is this: there was no “foresight ” that it knew it would not win and went ahead and wasted billions of naira. Dangote does not run a charity. What happened is this: Indomie WON!
Based on the BCG model(Growth share Matrix)Dufil primal Foods Plc (DPF)did a good strategy planning and leverage on competitive advantage.DPFoods got various brands but the distinctive INDOMIE Brand -define the ideal product characteristics this made consumers associate with the(indomie) offerings. Indomie (undefeatable )product got its uniqueness with products Niching and remain focused been through phases of cycle and understanding the sector all this and many more got them the market leader. Despite, the sector still remains attractive to more investors.Dangote conglomerate effort to overcome Dufil primal (indomie)suddenly in the sector is not a positive move which made them fallout to 2 years deal with Dufil Primal plc.Kudos Dufil