Competitive Markets and the Rule of Three
by Jagdish N. Sheth and Rajendra S. Sisodia
This research explains the relationship between profitability and market share. The research studied 200 industries, finding consistent patterns in market share and profitability, regardless of industry. In mature industries with many competitors, only three will eventually dominate through size and economies of scale. The only others who will not wind up competing in “the ditch” are those who have strategic control of a niche.