IT and ITES

Rule of Three

By:

Madhu Saxena-028

Shirish Sharma-046

Shiva Kumar Ramesh-048

Meti Pradeep-052

Sumit Kumar Chakraborty-054

What is Rule of Three?

• Economic Theory given Jagdish N.Sheth and

Rajendra S. Sisodia.

• Powerful Theoretical Construct-Proven Empirical

Reality.

• Provides a model for likely market evolution.

• Industries world-over moving towards it.

Theory

• Three types of competitors

i. Full-market generalists- Volume-driven.

ii. Product/market specialists- Margin-driven.

iii. Mid-sized companies- The ‘ditch’.

• Evolved market structure.

Current Scenario

• Full market generalists

1st- TCS

2nd- Infosys

3rd- Wipro

4th- HCL

Strategy for TCS

• Innovate

• Take care of the ‘vital few’ rather than

the ‘trivial many’

• Develop certain ‘niche’ products/

solutions

Strategy for Wipro

• Take care to protect innovations

• Be wary of the fourth player

• Avoid the ‘ditch’

Strategy for Super Specialists

• Think small, think future

• Decide carefully at the inflection point

• Grow, with care