ISSN – PRINT:2756-4495 | ONLINE: 2756-4487
Volume 03, Issue 02 – 2023
Dangote Cement Company is a leading cement producing company in subSaharan Africa with existing operations in ten African countries. It is the market leader by capacity with a market share of 60.3% in terms of earnings before interest, taxes, depreciation, and amortization. The company is able to maintain its market share leadership due to its strong market position and brand recognition, ownership of the largest production factory in SSA, large and extensive distribution network with specialized logistic apparatus, strong financial position and experienced and diverse workforce. It uses the advantages of backward integration and economies of scale to control the prices of cement in Nigeria and the other ten countries it operates. Dangote cement Plc has a competitive advantage in West and Central Africa due to higher capacity utilization, duty free intra-regional trades, better foreign exchange operations and lower raw material cost. It uses cost leadership strategy as the fulcrum of its overall sales and marketing principally based on strength, business integration and efficiency.
The company’s volume of sales/revenue showed consistent growth except for year 2019 because of Covid Pandemic. DANGCEM boasts of good financial health with low debt-to- asset ratio and net sales, operating profit, net income, and operating margin projections for the FY2022, 2023 and 2024. The strategic decision to acquire two major cement manufacturing plants in Nigeria and the expansion into subSaharan markets was a masterstroke which helped to sustain the growth trajectory of the company as well as its projected profitability.
ORCID ID: 0000-0003-1591-1141