Saturday, February 27, 2010

Rule of Threeee!!!! From an Indian Marketeer..

Rajender Sheth and Sisodia.... Came up with what is calld as the magic number 3. After going through several industries in different countries they came to a final ratiocination that the top 3 players in almost all the sectors contribute to a market share of around 70%- 90%.
Ex: Fast food(Mc D, Burger King, Wendy's), airlines(United,delta,america)..
Indian examples: Cars(Maruti,Tata,Hyundai), Laptops(HP, Dell, Compaq), IT(TCS,Infosys, Wipro)etc.
They say that other competitors enter into niche segment. Example: Laptops(Sony-premium).
LIMITATIONS:
In case of European Union rule of 4 is more appropriate
Monopoly and Industries with 2 major players are rare like Pepsi & Coke..
Energizer, Duracell etc. ---RamKumar

No comments:

Post a Comment