As written by Oluwole Dada, a Sales and Marketing Professional, Teacher, Counsellor, Administrator and Preacher.

Tonight, I saw on Twitter the usual argument that Dangote is not a successful businessman as he thrives only on government's connection and as usual I laughed. Let me respond as a marketing professional. There are three major ways by which you gain competitive advantage.

These strategies were defined by Michael Porter. The three strategies are:
1. Cost Leadership
2. Differentiation
3. Focus.

Follow me as you will find this thread useful either for your organization or your personal business enterprise.

Cost Leadership is the reduction of your cost of production better than your competitors such that you will be able to sell lower than them and still be able to make more margin than they do. This can be achieved through economies of scale with larger, better and faster equipment.

The use of cost leadership is prevalent when you are selling commodities. A commodity is something that can't be differentiated with a specific feature. Examples of commodities are water, steel, wood, cement, oil, cotton, food stuff, sugar, salt, wheat, etc.

With the list of commodities listed above, you will realize that Dangote specializes in commodities. His terrain of strength is in that sector and he understands that a cost leadership strategy is the most striking strategy to win in such a sector. He's found a way to reduce cost.

Today, Dangote Cement is the cheapest in the market. He is playing in the same market with international players such as Lafarge Holcim who were the market leaders at a time but Dangote came in with his cost leadership strategy and out witted them. Today, they're market followers.

BUA Cement is another player in the cement industry and I wonder why people will say Dangote is playing in a monopolistic market. When I asked Lafarge workers why Dangote Cement is cheaper than theirs, their response has always been Dangote's machines are the most recent.

He has found a way to get cheaper power in his industrial estates through an arrangement he made with General Electric. Power is one of the major cost inputs in the production of cement and he found a way to get cheaper power supply for his cement factory.

When Dangote stepped into the building of a refinery, there was nothing stopping other people from doing so but he took a bold step. Some got licenses but didn't make any move to start operations. Is that government connection? For the records, the refinery was to be at Olokola.

Olokola is in Ondo state. The same government that people claim supports him did not provide a good environment for him which made him to move to Lagos state. As much as he is the only one in that area now, BUA is building his own refinery in Akwa-Ibom and it will aid competition.

When that time comes, I know Dangote will embark on his cost leadership strategy and find a way to reduce his cost of production and he will likely begin to sell lower than his competitors which will be for the benefit of Nigerians. This is how the cost leadership strategy works.

On return to the competitive advantage strategy, the second way to gain advantage is differentiation. This is used when you sell a product whose feature can be used to differentiate it from another product of the competitors. Examples of these are electronics such as TV, computers, phones, ACs, etc. A phone can be differentiated from another through the memory size, sleekness, speed, RAM, etc. Another thing that can be used to differentiate is a brand name. An example of this is iPhone. iPhone differentiates itself with the brand name.

iPhone uses the sleekness of its product to differentiate itself. You'll realize that phones are more expensive than one another based on the factors I have listed above which are the features that helps differentiates one from another. Similar things happen to other electronics.

These features can help a company sell a product at a premium. Watch out for products that you buy at more expensive prices than its competitors and you will realize that it is because something has been used to differentiate one from the other.

Lastly, the one other strategy is focus. Focus is a strategy where you take a segment of the market & focus on it for sales. You create a product specifically for that segment of the market. There's what is called market segmentation. You can segment your market in different ways.

Market can be segmented demographically, geographically, psychographically and behaviorally.

Details of this will be discussed on another day. With this which you have read, whenever you are asked a question about Dangote's success, you will be able to explain it better.

https://twitter.com/oluwole_dada/status/1393663472446148609

Some people are just specially gifted with "Oversabi..."

A man who cannot defend his yansh from being exposed by a young international runs girl is who Oluwole Dada is defending with all his might.

Me discuss about Dangote's success?
Na him be say I no get work
Mtscheeeew

Rubbish..
How is dangote 's cement cheaper?
Beast in human clothing

Pseudo intellectual suffering from dunning kruger effect - lacking the skill set to unravel his own incompetence.

If Dangote was a citizen of a free society where everyone is treated equally, a society where everyone plays by the same rule their is no freaking way in hell he'd be successful, dude cannot even inspire.

Few weeks ago i read Yahoo and AOL will be sold to Apollo for 5B USD, understand this is the same Yahoo that rule in the 2000s and infact in 1999 made a revenue of about 589M USD while Google now Alphabet inc was making just 200k USD but what happen - Google pagerank (Disruption).

Before Facebook we have Myspace and a host of other social networking site that seem unbeatable at the time - we know where their graveyard is.

Dangote is only rich because by default the Government will help knock out his would be competition to retain his dominance.

G

Who is Aluko Dangote?

Major Azz licking

Na only Igbos hate this man and that's their trademark "hatred".

OYO

watery defense

I saw it on twitter. The writer is theoretically right but practically wrong. Dangote is government and government is dangote.

Cement cost o

Story. Then why all the FG intervention on his behalf? Do you have an idea how much of Nigerias money Dangote uses through corrupt politicians and public servant?

Ana akogheri

Nice analogy, but then how does Dangote get funds to always buy the latest equipment?
Through inhibiting the growth of his competitors through govt policies and when he's made enough money(financial warchest) he buys the latest equipment and enacts draconian pricing of his products to finally force the closure of his competitors!

Oga Oluwole, rest!
You can't be smarter than the 1000s of economists that has studied the Dangote's business model in Nigeria and yet gave him a thumbs down!

DANGOTE IS BAD FOR ANY ECONOMY!

Just say u work for dangote period..........................stop defending him, d wicked man is milking Nigerians

It is well

All this talk end once you dominate a market the way dangote does

Since you like to talk much, keep it at the back of your mind that china disturbed alibaba cos of anticompetitive behaviour and Facebook is getting theirs soon, theres a level you strangle your competition to that is deemed unfair, do you know how many people government mad it impossible for to complete with dangote by blocking their loans, import permits and the ones wey break those barriers had as much as 6 months to 2 years delay before their equipments can leave port, if you collect loan in billions then you know what 1 month's delay means. Once you kill competition you determine price, you see why cement price dey funny?

Dangote wey port from Jonathan to buhari in 2015 presidential election is the one y'all are saying doesn't enjoy massive government backing to further his monopoly? I laugh in Taiwanese.

Low budget Carlos Slim.

no wise business man won't be the richest in Africa if he enjoys the same favoritism like dangote..
do u know what it means to get the resources and support from the richest country in Africa??

All I Know is That , God Bless Dangote and Me Too

PR service well done.

Next?

Some people no jus get work,
U are here defending Dangote
Who asked u??
Some people can lick a$$ for Africa
Imagine?? Even everyone including the northerners knows Dangote thrives where competition is inexistent, recently u saw him and Bua Right?? Oga jus go siddon

The tweet was the truth and nth but the truth. A very interesting thread and that Hausa boy really did well and I love what he said. Brilliant Hausa boy.

PoshBoss007:
Dangote wey port from Jonathan to buhari in 2015 presidential election is the one y'all are saying doesn't enjoy massive government backing to further his monopoly? I laugh in Taiwanese.

Low budget Carlos Slim.

Nigeria na failed country, how can you allow one company to dominate a sector, it's like what happened with dstv, it's the consumers that will suffer it

make I check the name first..... ohhhh checked.... oluwole Dada.... a typical yoruba slave defending his Slave Master as usual....

Idiot.... dey defend person wen him actions and inactions fit further cripple the economy... A monopolist demon...

Remove monopoly from dangote for Nigeria, him go "broke" turn to politician...

Remove monopoly from dangote for US.... him go broke, liquidate, bankrupt and borrow money come back to Nigeria