The case describes Dangote Cement’s history, growth and business model. Dangote Cement is the main subsidiary of Dangote Group, a leading African multinational and the country’s largest conglomerate.
Starting as a trading firm, the group has branched out into several sectors (e.g., cement, sugar, flour, salt, FMG, agriculture, oil & gas, transport, etc) and Aliko Dangote, the Group’s founder, has become Africa’s wealthiest person and a leading industrialist.
Dangote Cement’s strategy involves a unique set of choices along the value chain to deliver a distinctive value proposition across several African markets. The company has become a top 10 global Cement company and the leading cement manufacturer in Africa through a highly integrated business model that responds to the particular challenges and opportunities present in the developing African continent.
Currently, the Group is investing heavily across different sectors (e.g., agriculture, fertilizer/chemicals, oil & gas, etc) and taking advantage of the multiple opportunities in the market. It is also consolidating its leading position in the African Cement industry, by entering new markets every year with a disruptive force.
However, as Dangote Group grows far and wide, as the African market develops and as competition for local and foreign players heats up, should the Group change the strategy that has worked so well?