Why does Henderson call this logic? Because it removes ego from decision-making.
Start by mapping out the market shares of your top competitors to see where you stand in the "natural equilibrium." the logic of business strategy bruce henderson pdf
: Henderson hypothesized that a stable, competitive industry will eventually settle into a state with no more than three significant competitors. In this equilibrium, the market shares of these players typically follow a 4:2:1 ratio , where the largest player has double the share of the second, and four times the share of the third. The Logic of Business Strategy: A Comprehensive Guide