The Rule of Three: Surviving and Thriving in Competitive Markets

by Jagdish N. Sheth, Rajendra Sisodia

Name any industry and more likely than not you will find that the three strongest, most efficient companies control 70 to 90 percent of the market. Here are just a few McDonald's, Burger King, and Wendy'sGeneral Mills, Kellogg, and PostNike, Adidas, and ReebokBank of America, Chase Manhattan, and Banc OneAmerican, United, and Delta Merck, Johnson & Johnson, and Bristol-Myers SquibbBased on extensive studies of market forces, the distinguished business school strategists and corporate advisers Jagdish Sheth and Rajendra Sisodia show that natural competitive forces shape the vast majority of companies under "the rule of three." This stunning new concept has powerful strategic implications for businesses large and small alike.Drawing on years of research covering hundreds of industries both local and global, The Rule of Three documents the evolution of markets into two complementary sectors -- generalists, which cater to a large, mainstream group of customers; and specialists, which satisfy the needs of customers at both the high and low ends of the market. Any company caught in the middle ("the ditch") is likely to be swallowed up or destroyed. Sheth and Sisodia show how most markets resemble a shopping mall with specialty shops anchored by large stores. Drawing wisdom from these markets, The Rule of Three offers counterintuitive insights, with suggested strategies for the "Big 3" players, as well as for mid-sized companies that may want to mount a challenge and for specialists striving to flourish in the shadow of industry giants. The book explains how to recognize signs of market disruptions that can result in serious reversals and upheavals for companies caught unprepared. Such disruptions include new technologies, regulatory shifts, innovations in distribution and packaging, demographic and cultural shifts, and venture capital as well as other forms of investor funding.Years in the making and sweeping in scope, The Rule of Three provides authoritative, research-based insights into market dynamics that no business manager should be without.

Genres: Business, Nonfiction

288 pages, Hardcover

First published December 25, 2001

Reviews

[Vikrama Dhiman · Rating 5 out of 5]

Fantastic

This is a gold mine of a book for anyone incharge of strategy, product and growth at an organization. Concepts you grasp intuitively are put in a rigorous academic framework. Each chapter is detsiked yet crisp - worth the time - however, explanation chapter of #1, #2, #3, abd chapters on the strategy for #1 and #2 players were just out if the world. Would love an edition dedicated to the Tech Sector.

Books like these make me happy that world class MBA level education and upskilling can be done at all times. Thank you for writing this fabulous book.

[Anuj · Rating 3 out of 5]

It was a rare book that showed promise of how to evaluate markets. Unfortunately it was too heavy on examples. The book could have been an order of magnitude shorter. The general premise seems to be right though.