ABSTRACT
In 2002, two management researchers, J. Sheth and R. Sisodia published a book called The Rule of Three. In it, they analyzed pretty much every market they could get data on and found remarkable similarities. The first domain is defined by three major players, generalists who together control around 70–90 percent of the market. The second domain comprises niche specialists, each holding a monopolistic position in a tightly-defined product or sub-market category— each specialist typically has a market share of 1–5 percent, but makes high margins due to its niche-market dominance. The third domain is termed “the ditch.” In Europe, the continuing dominance of national markets, the consequences of deregulation in the 1990s followed by the Internet-boom and investment in new facilities-based carriers and a history of monopoly has resulted in a fragmented market structure with too many small players. Getting to consumers is always the problem with the residential market segment. Copper wire is normally owned by the incumbent.
