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 examples: McDonald's, Burger
King, and Wendy's General Mills, Kellogg, and Post Nike, Adidas,
and Reebok Bank of America, Chase Manhattan, and Banc One American,
United, and Delta Merck, Johnson & Johnson, and Bristol-Myers
Squibb Based 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.
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