**Finalist for the 2022 Leonard L. Berry Marketing Book Award from the American Marketing
Association which recognizes the top marketing books annually** In our increasingly digital
mobile and global world the existing theories of business and economics have lost much of
their appeal with the phenomenal rise of Chindia the reality of Brexit the turmoil caused by
the Covid-19 pandemic and the seismic shifting of the global center of gravity from west to
east. In the area of innovation the traditional thinking that a developed country often the
US will come up with the next major innovation launch at home first and then take it to
other markets does not ring true anymore. Similarly the world where conglomerates go
bargain-hunting for acquisitions in emerging markets has been turned upside-down. This book
reveals and illustrates the Global Rule of Three phenomenon which stipulates that in
competitive markets only three companies (which the authors call generalists) can dominate the
market. All other players in the market are specialists. Further whereas the financial
performance of generalists improves as market share increases specialist companies see a
decrease in financial performance as their market share increases as the latter are
margin-driven companies. This theory powerfully captures the evolution of global markets and
what executives must do to succeed. It is based on empirical analyses of hundreds of markets
and industries in the US and globally. Competitive markets evolve in a predictable fashion
across industries and geographies where every industry goes through a similar lifecycle from
beginning to end (or revitalization). From local to regional to national markets the last stop
in the evolution of markets is going global. The pattern is so consistent that it represents a
distinct and natural market structure at every level. The authors offer strategies that
generalists and specialist should follow to stay competitive as well as twelve expansion
strategies for global companies from emerging markets. This book chronicles this global
evolution and provides impactfulmanagerial implications for executives and students of
marketing and corporate strategy alike.
