A case study of corporate diversification and vertical integration in Africa
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Title: | A case study of corporate diversification and vertical integration in Africa |
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Authors: | Fernandez-Vidal, Jorge | González-Ramírez, Reyes | Gascó, José L. | Llopis, Juan |
Research Group/s: | Sistemas de Información y Recursos Humanos en las Organizaciones (SIRHO) |
Center, Department or Service: | Universidad de Alicante. Departamento de Organización de Empresas |
Keywords: | Corporate strategy | Corporate diversification | Vertical integration | African multinational | Case study |
Issue Date: | 15-May-2023 |
Publisher: | Routledge |
Citation: | Economic Research-Ekonomska Istraživanja. 2023, 36(3): 2185792. https://doi.org/10.1080/1331677X.2023.2185792 |
Abstract: | Africa is home to some of the world’s most original, resilient, and remarkable companies. The singular challenges and opportunities of the continent’s economic environment have given rise to idiosyncratic strategies and business models. However, there is a notable absence of studies on African companies. While there are numerous noteworthy companies in Africa, there are few as relevant, successful, and influential as the Dangote Group. This paper aims to add to the limited literature in the area by analyzing the business model and strategic choices of Dangote Cement, the Group’s flagship business and one of Africa’s industrial giants. In particular, it explores its corporate diversification and vertical integration strategies, which are at the core of its success. This article is based on 7 interviews with internal and external Dangote stakeholders and a detailed questionnaire completed by the Strategy Department of the firm, together with public data of the company. While the topics of diversification and integration have been studied in multiple contexts, this article provides an original perspective by applying existing research and management thinking to the specific business environment of Africa. This paper explores how and why Dangote Cement diversifies and how it identifies and integrates the advantages and disadvantages of its strategic choices. We believe it provides an original perspective that furthers our limited collective understanding of and research on strategic practices in Africa, the world’s last business academic frontier. |
URI: | http://hdl.handle.net/10045/134401 |
ISSN: | 1331-677X (Print) | 1848-9664 (Online) |
DOI: | 10.1080/1331677X.2023.2185792 |
Language: | eng |
Type: | info:eu-repo/semantics/article |
Rights: | © 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent. |
Peer Review: | si |
Publisher version: | https://doi.org/10.1080/1331677X.2023.2185792 |
Appears in Collections: | INV - SIRHO - Artículos de Revistas |
Files in This Item:
File | Description | Size | Format | |
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Fernandez-Vidal_etal_2023_EconRes.pdf | 2,28 MB | Adobe PDF | Open Preview | |
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