The Rule of Three
by Jagdish Sheth and Rajendra Sisofia
“The Rule of Three” describes the evolution of markets as 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 argue that most markets resemble a shopping mall with specialty shops anchored by large stores. Drawing wisdom from these markets, “The Rule of Three” offers suggested strategies for the “Big 3” market leaders, as well as for mid-sized companies that want to achieve market leadership, and for specialists striving to flourish in the shadow of industry giants. The authors also explain how to recognize signs of market disruptions that can result in serious reversals and upheavals for companies caught unprepared. “The Rule of Three” provides insights into market dynamics that have strategic implications for businesses large and small alike.