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
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