In marketing, many people assume that a category will become more concentrated over time, dominated by just a few major brands. But in reality, the opposite tends to happen: as time goes on, every market naturally divides into smaller segments, each serving different needs and audiences. This is the essence of the Law of Division — one of the immutable laws of marketing proposed by Al Ries and Jack Trout.
The Law of Division states: “Over time, a product category will divide and become two or more categories.” Initially, a market may be represented by a single product or brand. But as consumer needs diversify, the market naturally splits into different product lines, brands, or styles.
For example, the computer industry once had only “personal computers,” but it later divided into laptops, tablets, gaming PCs, office desktops, and more. The beverage industry once revolved around “cola,” but now includes mineral water, energy drinks, detox water, vitamin water, and more. The mobile phone market has split into basic phones, smartphones, foldables, and camera-focused models.
The Law of Division shows that no market remains unified forever. Advances in technology, shifts in consumer behavior, and brand competition drive segmentation. And within each new segment, there’s an opportunity for new brands to lead.
Therefore, instead of trying to dominate an entire market, businesses should focus on identifying the segment that best aligns with their strengths. When you choose the right niche — one where needs are still underserved — you can become the leader in that space. And that’s how the Law of Division opens up opportunities for latecomers who know how to take the right path.
