by: Yann Gourvennec
Have you ever wondered why most markets – when they are mature enough – end up being dominated by 3 players?
Sheth and Sisodia (2002 – buy it from Amazon) have carried out a study about this and a book is available (buy an ebook version here for $ 14.99). 12manage.com (see link below) comments that this is not applicable to Europe. However I think it does apply to Europe, but it can’t apply where markets are not yet open and transparent on a European level. For instance, if you apply this rule to the telecoms market, it is very likely that you will find that the rule applies in each country individually (multi-national markets). Where globalisation has already happened (for instance in the fast food market), the rule will apply across Europe with Mc Donald’s, Quick or Burger King and the rest of the niche players for instance. Does that mean that the ultimate goald of extreme competition is … no competition at all? Eerie isn’t it?
Original Post: http://visionarymarketing.wordpress.com/2006/09/06/the-rule-of-three-do-most-markets-end-up-being-dominated-by-3-different-companies/
