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 impactful managerial implications for executives and students of
marketing and corporate strategy alike.
