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Rule of Three
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Dominating your industry. Explanation of Rule of Three by Sheth and Sisodia. ('02)Contributed by: Amita Paul |
What is the Rule of Three? DescriptionThe Rule of Three method from Jagdish Sheth and Rajendra Sisodia holds that 3 big companies will evolve/adapt to dominate any industry. Name the players in almost any industry; from airlines (United, America, and Delta) to fast food (McDonalds, Burger King and Wendy's) and you'll find that 3 is the magic number. Other companies will be niche players, or fall in the ditch (i.e. a market position between generalist and specialist that offers no long-term viability).
Origin of the Rule of Three. HistoryEmpirical study and case studies of a large set of companies were studied by Professors Jagdish Sheth and Rajendra Sisodia. Based upon years of research on hundreds of both national and local companies, Sheth and Sisodia showed that three market leaders are eventually surrounded by smaller "specialists" who successfully concentrate on niche products (such as high-end audio gear) or niche markets (like fashions for professional women). Sheth and Sisodia say most markets resemble a shopping mall. With specialty shops anchored by large companies.
Usage of the Rule of Three. ApplicationsUseful for strategy/competitive moves by businesses, small or large.
Strengths of the Rule of Three. Benefits
Limitations of the Rule of Three. Disadvantages
Book: Jagdish Sheth
and Rajendra Sisodia - Rule of Three -
Book: Michael E.
Porter - Competitive Strategy : Techniques for analyzing industries and competitors
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Rule of Three ForumRule of Three Special Interest Group
Rule of Three Education & Events
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Compare with Sheth and Sisodia's Rule of Three: Competitive Advantage | Delta Model | BCG Matrix | Distinctive Capabilities | Relative Value of Growth | Experience Curve | Twelve Principles of the Network Economy | Blue Ocean Strategy | Strategic Types
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