How competition will shape Indian markets

Document Type

Article

Publication Title

Journal of Marketing & Communication

Abstract

Competitive markets evolve in a predictable manner and, once mature, exhibit many similarities across industries and geographies. Most notably, each market tends to be dominated by three (not two or four) major, volume-driven firms, which we term “full-line generalists,” surrounded by a constellation of smaller margin-driven firms that are either product or market specialists. The three large firms together control approximately 70% to 90% of the market; niche players serve the balance. Further, a company needs a market share of at least 10% to be viable as a full-line generalist. In between the generalists and the specialists is a gap, representing a market share of between 5% and 10%. It is in this “ditch” that efficiency suffers and financial performance tends to be weakest relative to other levels of market share.

Publication Date

1-4-2005

Publisher

NIILM Center for Management Studies

Issue

Iss.May

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