3 Nephi 7:1-3

The wicked wanted a king to rule over them.  Before this could be done, they had to overthrow the government.  They murdered the chief judge to accomplish this.  It worked.

After the assassination of the chief judge, the people became divided.  “[T]hey did separate one from another into tribes, every man according to his family and his kindred and friends; and thus they did destroy the government of the land” (3 Nephi 7:2).

Each tribe appointed a leader over their tribes.  All the people became part of a tribe, so they became “exceedingly great” (3 Nephi 7:4).

Hugh Nibley summarizes the state of the Nephites.

All these people, who were the rulers and masters of the country, holding high office and keeping the power in their family and their class, then covenanted "to destroy the governor, and to establish a king over the land" (3 Nephi 6:30). The next step is the breakup of the Nephite state "into tribes, every man according to his family and his kindred and friends; and thus they did destroy the government of the land" (3 Nephi 7:2). The hated central government with its intolerable restraints on the great families and the great fortunes was no more. They formed very great tribes (3 Nephi 7:3—4), and "their leaders did establish their laws, every one according to his tribe" (3 Nephi 7:11). The victory of partisan Nephites over centralized government was complete. This was the state of things when the great destructions occurred at the time of the crucifixion.[1]

They wanted a leader who would not be hampered by legislative checks and restraints of any kind. The standard solution lay ready at hand: They murdered the chief executive. In the confusion that followed, the people broke up into tribes, "every man according to his family and his kindred and friends; and thus they did destroy the government of the land" (3 Nephi 7:2). At last they were free of annoying government regulations…[2]

This was done without wars among the people.  Why?  “[B]ecause they did yield themselves unto the power of Satan” (3 Nephi 7:5).  By choosing to yield to the devil, the people became ripe for destruction.  Paul warned us,  “Know ye not, that to whom ye yield yourselves servants to obey, his servants ye are to whom ye obey; whether of sin unto death, or of obedience unto righteousness?” (Romans 6:16).   The Nephites had been warned about the consequences of following Satan. 

But Amulek stretched forth his hand, and cried the mightier unto them, saying: O ye wicked and perverse generation, why hath Satan got such great hold upon your hearts?  Why will ye yield yourselves unto him that he may have power over you, to blind your eyes, that ye will not understand the words which are spoken, according to their truth?

Alma 10:25

We are approaching the day of Christ’s crucifixion.  Enoch had seen this day in vision.  Terrence L. Szink tells us:

In Enoch's vision the Lord described the meridian of time as "days of wickedness and vengeance" (Moses 7:46). Certainly this is an accurate description of the era. The Book of Mormon prophet Jacob described those who crucified Jesus as "the more wicked part of the world" and went on to say that there was "none other nation on earth that would crucify their God" (2 Nephi 10:3).

Not only was there wickedness in the Old World that resulted in the crucifixion of Jesus, but there was great wickedness among the Nephites and Lamanites in the New World at that time. Third Nephi describes the rise of the secret combinations, the collapse of the government, the murder of prophets, and general wickedness that characterized the age (see 3 Nephi 7:5–7).[3]

So great was the contention, “the more righteous part of the people had nearly all become wicked; yea, there were but few righteous men among them” (3 Nephi 7:7).  They had become like a dog that returns to his vomit.  “As a dog returneth to his vomit, so a fool returneth to his folly” (Proverbs 26:11).

A secret combination appeared, led by Jacob₃.  He was called king of the wicked band.  He was responsible for the deaths of many of the prophets who had testified the wickedness of the people.  His band had brought “great iniquity upon the people” (3 Nephi 7:9). 

This band was not as large as the other tribes were.  He did have an influence on the people.  He united them “in the hatred of those who had entered into a covenant to destroy the government” (3 Nephi 7:11).  Jacob₃ and his band paid for their wickedness. 

And behold, that great city Jacobugath, which was inhabited by the people of king Jacob, have I caused to be burned with fire because of their sins and their wickedness, which was above all the wickedness of the whole earth, because of their secret murders and combinations; for it was they that did destroy the peace of my people and the government of the land; therefore I did cause them to be burned, to destroy them from before my face, that the blood of the prophets and the saints should not come up unto me any more against them.

3 Nephi 9:9

Each tribe established their own laws for their own people.  “[T]hey were enemies” (3 Nephi 7:11).  John L. Sorenson explains the situation in which the Nephites find themselves.

[A] kin-group structure in Nephite society underlay the monarchy. When the central government collapsed shortly before the Savior's visit to the Nephites (see 3 Nephi 7), the process of governing fell into the hands of "tribes and leaders of tribes. Now behold, there was no man among them save he had much family and many kindreds and friends; therefore their tribes became exceeding great" (v. 4). The tribal and kinship structure had always been in place (see Jacob 1:13); in the moment of crisis when the regime in Zarahemla evaporated, additional functions fell on the kin-based tribal structure. What we see in 3 Nephi 7 is a default government, not centralized like that formerly headed by kings or chief judges, yet sufficiently capable to enact and administer "their laws, every one according to his tribe" (3 Nephi 7:11).[4] 

Jacob₃ realized they had a problem because their enemies were many.  They fled into the northernmost part of the land.  They moved so quickly that nothing could be done to stop their move.  There they built their kingdom in the northernmost part of the land.  They became stronger as dissenters joined their band.  They became strong enough to contend with the tribes and did so.

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[1] The Way of the Wicked, Hugh W. Nibley, Provo, Utah: Maxwell Institute, accessed November 11, 2012.

[2] The Book of Mormon: Forty Years After, Hugh Nibley, Provo, Utah: Maxwell Institute, accessed November 11, 2012.

[3] The Vision of Enoch: Structure of a Masterpiece. Terrence L. Szink, Provo, Utah: Maxwell Institute, accessed November 11, 2012.

[4] How Could Joseph Smith Write So Accurately about Ancient American Civilization? John L. Sorenson, Provo, Utah: Maxwell Institute, accessed November 11, 2012.