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    The Rule of Three: Surviving and Thriving in Competitive Markets

     
    Three's a crowd? Not in business.
    2/4/2002
    Think of any mature industry. Three titans with a lot of niche players pulling up the rear, you'll notice, rule many. Examples from the world of pharmaceuticals include Merck, Johnson & Johnson, and Bristol-Myers Squibb. Or fast food: McDonald's, Burger King and Wendy's. So what is it about threes? As business professors Sheth, of Emory University, and Sisodia, of Bentley College, explain, all industries tend to follow a consistent, cyclical pattern that favors three giant generalists trailed by specialists. The implications for your own business can be significant. After explaining their concept, the authors describe how generalists, specialists, and the unlucky ones stuck in the middle (or "the ditch") can use the rule of three to pinpoint their own position before carving out the most effective strategy for long-term growth.
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