The Rule of Three

The Rule of Three


Sheth, Jagdish N. | Sisodia, Rajendra S. The Free Press, 2001
Price: $99.


According to The Rule of Three, "natural" competitive market structures evolve by a process that is analogous to the selection processes found in nature, which favor those who are the strongest, the fittest, and the most efficient. Most industries, left to their own devices, evolve and consolidate into a distinct pattern of two complementary groups, consisting of three market-dominating generalists and numerous specialist niche players--the strongest, fittest, and most efficient/effective of their industries.

The Rule of Three draws on extensive research of market forces to show executives and managers how the effects of this market construct determine business strategy, offering counterintuitive guidelines for successfully predicting trends in competition and profitability.