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Bus 5114 Case Study Week 4
Bus 5114 Case Study Week 4
Dangote Cement is Africa's leading cement producer with nearly 51.6Mta capacity across
Africa (Dangote Cement PLC, 2022, p.3). A fully integrated quarry-to-customer producer, we
have a production capacity of 35.25Mta in our homemarket, Nigeria. Our Obajana plant in Kogi
state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; our Ibese plant
in Ogun State has four cement lines with a combined installed capacity of 12Mta; our Gboko
plant in Benue state has 4Mta; and our Okpella plant in Edo state has3Mta (Dangote Cement
PLC, 2022, p.3). Through our recent investments, Dangote Cement has eliminated Nigeria's
dependence on imported cement and has transformed the nation into an exporter of cement
grinding), Congo (1.5Mta), Ghana (1.5Mtaimport), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra
Leone (0.5Mta import), South Africa (2.8Mta),Tanzania (3.0Mta), Zambia (1.5Mta) (Dangote
Dangote Cement Plc prepares, manufactures, and distributes cement and associated goods.
It operates in the Nigerian and Pan-African geographies. The company was established on
November 4, 1992, and is based in Lagos, Nigeria (Palmer, et.al., n.d.). Nick Skillicorn believes
Innovation is defined as the transformation of an idea into a solution that adds value from the
standpoint of the client (Skillicorn, 2022). Innovations generate more opportunities and are
crucial for a company's survival, economic growth, and success (Toolshero, n.d.). Innovating
aids in the development of new ideas and is a driving force in the optimization of operations
(Toolshero, n.d.). Companies that innovate are able to shift the organization into a new paradigm
in order to uncover new opportunities and best solutions to current problems (Toolshero, n.d.).
Understanding how disruptive innovation works will assist leaders in preparing their
organizations to anticipate innovations that may become competitors (Pratt, & Petersen, 2020).
Disruptive technology is defined as "an innovation that fundamentally disrupts the way
customers, industries, or businesses operate" (Smith, 2020). Dangote cement calls itself
disruptive by producing larger quantity and higher quality product at a lower cost. Dangote
Cement has been able to provide cement in communities that other companies were unable to
reach. They hoped to obtain a competitive advantage and expand their market share to a greater
portion of Africa (Writer thoughts). Dangote Cement relies on an innovative approach that
allows them to meet their clients' demands without delay or product degradation. Clayton
Christensen popularized the concept of disruptive innovation in his book "The Innovator's
Solution," which was a follow-up to his 1997 book "The Innovator's Dilemma." Disruptive
technologies and how they are incorporated were more difficult to plan for and perhaps more
damaging to companies that did not pay enough attention to them. (Christensen, & Maxwell,
2012)
Dangote cement's first-quarter financial statement reveals how successful they are (Writers
Comment). This research on marketshare can be found at the website provided (Dangote Cement
Accounts.pdf They have been able to keep being disruptive and growing because they've stayed
on top of the significant societal concerns at hand. In terms of sustainability, this has been
discussed in the case study for unit 1. Additionally, they use a variety of engagement channels to
capture the views of their stakeholders (Dangote Cement, n.d.), they support their host countries
and local communities by nurturing a value chain that prioritizes the patronage of local labor,
suppliers, vendors, and contractors as a means of building local capacity (Dangote Cement, n.d.),
and in their host communities, they work to promote socioeconomic well-being through direct
and indirect employment, local entrepreneurial development, and patronage of local suppliers
The business model of Dangote Cement is extremely replicable. Bua cement (founded in
2008), one of Dangote Cement's biggest competitors (Bua Cement, n.d.), is an example of a
business established after Dangote Cement's entry into the market. Dangote cement has had to
raise their expenditures on market dominance, PR, and factory openings closer to high demand
distribution services by leveraging their current client base in various geographical locations.
Dangote cement should pay attention to advertisements and focus on evaluating the contents in
accordance with the legal framework that governs digital media content in each region.
References
https://adamhartung.com/value-proposition-more-successful-than-value-deliverysystem/tps://
hbr.org/2015/12/what-is-disruptive-innovation
https://dangotecement.com/institutional/
https://dangotecement.com/wp-content/uploads/2022/04/DCP-Q1-2022-Result-Statement.pdf
Dangote Cement. (n.d.-a). ECONOMIC – Welcome to Dangote Cement Plc.
https://dangotecement.com/economic/
https://dangotecement.com/social/
Palmer, J., Team, F. W., & Nsehe, M. (n.d.). Dangote Cement. Forbes.
https://www.forbes.com/companies/dangote-cement/?sh=2f232f037a3a
Pratt, M. K., & Petersen, S. (2020, November 9). disruptive innovation. SearchCIO.
https://www.techtarget.com/searchcio/definition/disruptive-innovation
Skillicorn, N. (2022, March 7). What is innovation? 26 experts share their innovation definition.
share-innovation-definition/
Archives. https://www.toolshero.com/innovation/