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The rule of three is the economic theory that large mature markets are typically dominated by three competitors. The theory suggests that a new industry with hundreds of competitors will experience mergers, acquisitions and shakeouts that see three large firms emerge. The rule of three also suggests that a firm that dominates an industry with few competitors is vulnerable to competition. Large dominant firms tend to become less responsive to customers and innovation, opening up space for a competitor or two.
Business Theory
This is the complete list of articles we have written about business theory.
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A list of interesting business theories.
How an early lead can become a disadvantage.
An overview of business as usual.
A theory of innovation and storytelling.
A list of common business first principles with a guide to each.
A list of the common types of business.
A list of economic theories that are particularly useful for business.
The tendency for people at high risk to buy insurance.
A list of economic positions or capabilities that allow you to outperform in a particular industry.
A definition of knowledge work with examples.
A definition of production with examples.
An overview of post-scarcity.
The common types of economic infrastructure.
The common types of business competition.
The common types of inefficiency.
An overview of supply with common examples.
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