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Anonymous
Posted January 16, 2007
Grow Profitably, Not for The Sake of Growth, in Competitive Markets
After thoroughly analyzing local and global industries, Jagdish Sheth and Rajendra Sisodia observe that in most mature markets which can evolve without excessive government interference the remaining players can be subdivided in three categories: 1) Three full-line generalists which usually control 70 to 90 percent of the market, 2) Specialists, product and/or market specialists, which control between 1 to 5 percent of the market, 3) Companies caught in the middle (= the ditch), which share 5 to 10 percent of the market among themselves. Sheth and Sisodia clearly show how a typical industry subject to non-excessive government regulations evolves over time, first locally, then nationally, and finally globally. Growth and efficiency each play their role in shaping such an industry. Generalists and specialists usually do not compete with each other because they target customers with different wants and needs. Sheth and Sisodia demonstrate with much conviction that the companies in the ditch are either undersized full-line companies that were pushed by the wayside following intense competition or overgrown niche players that have tried to grow ¿too much, too soon.¿ To their credit, Sheth and Sisodia do a great job in identifying the strategies that each of the three full-line generalists can use to further improve their respective competitiveness. Practical examples make these strategies understandable. Likewise, the authors convincingly demonstrate which strategies specialists can use to either become or remain a big fish in a small pond. Finally, Sheth and Sisodia shed light on the disruptive role that technology, regulations, market shifts, and investments can play in shaping an industry. To summarize, The Rule of Three is beneficial not only to corporate leaders, investment banking, consulting, and venture capital, but also to antitrust authorities.
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Anonymous
Posted February 11, 2002
A Compelling Examination Of Competitive Markets
'Rule of Three' offers a theoretical and real-world perspective of business competition. While arguably there are variances within industries, there is considerable merit in the dominance and relationship between the top three competitors. There is no question that competition exists; however, this book accurately portrays the realities associated with market dominance, niche strategy and competition. This book comes highly recommended to practitioners as well as students of business. This is a must read. The book is repleat with examples, thorough and not only readable, but usable in industry.
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