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    From 1976 through 2009, industries with one, two, or three generalists ranged from 72 percent to 85 percent and averaged 78 percent.The most common industry structure throughout the period was the three-generalist configuration, which prevailed in 13 of those 34 years and was the second-most common in 20 out of 34 years.

    Yet we found no such trend in high-volatility industries—the three-generalist configuration had no advantage over others.Industries with three-generalist structures have also proven the most profitable for industry participants, with an average return on assets a full 2.5 percentage points higher than in industries with four, five, or six generalists.Additionally, three- and two-generalist configurations appear to have the greatest stability and to act as the strongest “basins of attraction”—that is, more companies gravitate toward these structures every year than toward any other.Moreover, that industry structure will find equilibrium when the market shares of the three companies reach a ratio of approximately 4:2:1.Henderson noted that his observation had yet to be validated by rigorous analysis. Does it merit the attention of today’s decision makers? To test Henderson’s theory, the BCG Strategy Institute, working in collaboration with academics from Chapman, Claremont, and Rutgers Universities, studied industry data from more than 10,000 companies dating back to 1975.

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