Global Rule of Three: Competing with Conscious Strategy

The Global Rule of Three phenomenon stipulates that in competitive markets only three companies can dominate the market, while specialist companies see a decrease in financial performance as their market share increases. This theory captures the evolution of global markets and offers strategies for generalists and specialist to stay competitive.

\n Format: Paperback / softback
\n Length: 289 pages
\n Publication date: 11 December 2020
\n Publisher: Springer Nature Switzerland AG
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In the ever-evolving landscape of our digital, mobile, and global world, the traditional theories of business and economics have found themselves increasingly challenged by the remarkable rise of China, the realities of Brexit, the tumultuous impact of the COVID-19 pandemic, and the seismic shift in the global center of gravity from the West to the East. The realm of innovation has witnessed a significant transformation as well, with the notion that developed countries, often the United States, will consistently lead the way in generating groundbreaking innovations, launching them domestically first, and then expanding to other markets. Similarly, the once-dominant model of conglomerates engaging in bargain-hunting acquisitions in emerging markets has undergone a radical upheaval.

To navigate these complex and rapidly changing dynamics, this book unveils and exemplifies the fascinating phenomenon known as the Global Rule of Three. According to this rule, in competitive markets, only three companies, referred to as generalists, can achieve dominant market share. All other players in the market are classified as specialists. Notably, as the market share of generalists increases, their financial performance tends to improve, driven by the economies of scale and the benefits of diversification. In contrast, specialist companies, often characterized by their focus on specific niches or technologies, experience a decline in financial performance as their market share grows, as they are inherently margin-driven and face increasing competition.

This groundbreaking theory provides a powerful lens through which to understand the evolution of global markets and the strategies that executives must adopt to succeed. It is grounded in extensive empirical analyses of hundreds of markets and industries across the United States and around the world. The book offers valuable insights into the predictable patterns that govern.

\n Weight: 488g\n
Dimension: 157 x 234 x 22 (mm)\n
ISBN-13: 9783030574727\n
Edition number: 1st ed. 2020\n