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The Rule of Three: Surviving and Thriving in Competitive Markets Hardcover – Import, 25 Dec 2001

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Amazon.com Review

The Rule of Three, by Jagdish Sheth and Rajendra Sisodia, offers an innovative take on corporate development that could help leaders put their own operations into a new context that improves competitive strategies and boosts market performance. Sheth and Sisodia, consultants and marketing professors, base it on their contention that just three major players ultimately emerge in all markets--such as ExxonMobil, Texaco, and Chevron in petroleum, and Gerber, Beech-Nut, and Heinz in baby foods. These giant "full-line generalists" 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), along with midsized "ditch-dwellers" who struggle to reach an audience in between (like second-tier airlines that compete with goliaths on price and regionals on service). The authors examine this pattern of market evolution and the "radical disruption" that can occur when technology or regulation changes or a new entry "succeeds in altering the rules" (as Starbucks did by sneaking up on coffee's Big Three). Appendices present helpful examples of the way this has shaken out in various industries. --Howard Rothman

From Booklist

Although this is the second book coauthored by Sheth and Sisodia, Sheth has written or coauthored many previous books dealing with marketing. The rule in their book is a Darwinian theory of sorts applied to business, stating that "natural competitive market structures evolve by an analogous selection process that favors the strongest and most efficient companies." The forces playing a role in the theoretical application are industry consolidation, government intervention, the establishment of de facto standards, and shared infrastructure. To study and analyze a particular market and the forces affecting it, the authors look to the three largest companies in that market. The companies can be divided into "generalist," with multiple brands that can perform on a global level, and "specialist," with a single brand. The breakdown of the theory into specifics, market snapshots, and notes, all based on the thorough research and expertise of the authors, makes this a good guide for business leaders, analysts, and students, as well as colleagues in advertising and marketing firms. Eileen Hardy
Copyright © American Library Association. All rights reserved

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Product details

  • Hardcover: 288 pages
  • Publisher: Free Press (25 December 2001)
  • Language: English
  • ISBN-10: 074320560X
  • ISBN-13: 978-0743205603
  • Product Dimensions: 15.9 x 2.5 x 24.1 cm
  • Average Customer Review: 5.0 out of 5 stars 1 customer review
  • Amazon Bestsellers Rank: #4,43,349 in Books (See Top 100 in Books)
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Amazon.com: 3.5 out of 5 stars 11 reviews
3.0 out of 5 starsSimple but powerful conclusion for fairly mature industries
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Wayne Lynn
4.0 out of 5 starsCEO's need to read this
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5.0 out of 5 starsVery good. I recommend!
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