How do companies determine how many service providers/franchises/outlets/branches to place/allow into a community? Do McDonald’s and Burger King use some sort of “magic formula” equivalent to their secret sauce recipes that no one else knows about but them? And how much market penetration actually leads to an implosion of the traditional business model?
What happens if someone detemines that one more is too many? Do they keep it under their hat and hope that one or more members of their own organization fail so the decision-maker can save face through attrition? Do they re-evaluate the situation and transfer one or two members to less-populous or competitive locations to allow for greater overall growth and productivity for all parties involved? What are the criteria for determining the feasibility of a given market for a specific business purpose? Do all of the standard models used throughout history still apply in the internet age?
I’m interested in hearing some opinions. For now, I’ll throw the SCUBA gear back on.