Somewhat related and something I've thought about over the years: "Here's a model that we've had trouble with. Maybe you'll be able to figure it out better. Many markets get down to two or three big competitors—or five or six. And in some of those markets, nobody makes any money to speak of. But in others, everybody does very well. Over the years, we've tried to figure out why the competition in some markets gets sor…
Soft drink distributors are an interesting case- they sell the same thing, with the same brand, in different markets- apparently some are profitable and others aren't. I would guess it has to do with price sensitivity of the customers in a given market- some markets may not prefer one beverage over another as strongly as other markets, whereas they may be much more price sensitive.