So, any time a company comes in with lower prices (and services) you call it an imbalanced market?
Any time? No, of course not. When they are large enough to drive other's behavior because of market dominance? And part of the equation is having an informed consumer. That's why insider trading is disallowed -- having one person making a trade who has more information than the person they are trading with gives them an unfair advantage. That imbalances the market as well.
The dive certification industry is inherently imbalanced because the consumers are without any viable information for the most part. The only information the customer has to go on is cost and time. They are unaware of differences in training standards or how those standards might effect their safety, their skill level, their enjoyment of the sport, their predilection to remain in the sport, etc. And the 'expert' instructors are telling them that they will be safe after only a few days of training.
I'd rather go to Home Depot and buy things cheaper than buy the same things (with less variety) at the local Mom and Pop.
There's a difference between inexpensive and cheap. Buying products at Walmart and Home Depot often results in a greater long term expense than buying the more expensive, but less cheap, product elsewhere. But the average consumer isn't going to know that. This can be caused by a lack of knowledge, or a desire to spend as little as possible in meeting needs. In scuba diving the likelihood is that it is much more of the former and far less of the later.
In locales where large box stores have killed the local competition, the problem is also one of a lack of choice on the part of the consumer.
There is no market principle that guarantees that any company once started can continue and can continue even in the face of change.
I never claimed there was an inherent right for a company to flourish. But I think you hit on a very key point. PADI is a company who makes profit off of selling certifications, not off of training divers. They could not care less about the quality of their training or the quality of the divers they turn out. What they care about is maximizing profits through properly marketing the sale of certifications.
This is really the heart of the problem. Profit motives will always trump moral imperatives.
Some companies are more effective and efficient in dealing with change and those are the ones with the profits and the jobs to distribute.
To use the Walmart example the company doing well by having 'jobs to distribute' does not serve the community well as those jobs lower wage standards, do not come with any benefits and in general cost the community more than the business returns to the community. The net effect of the large box store model is to harm, not help, the local population.
So, since some Mom and Pops are doing well differentiating themselves there is no reason that some dive organizations can't do well by differentiating themselves.
No one has said they could not. My point again is as the market relates to the effect on population, not on the difficulty of a particular organization in staying around. I said before I don't see NAUI or CMAS or SEI failing as organizations. But they are continually losing their ability to provide balancing information to the market.
People have to deal with change. I may not like it when sitting under a tree if an apple drops on my head but gravity being what it is...I still have to deal with it. Just because I used to be able to sit there without getting hit doesn't mean that now the laws of physics are imbalanced.
One of they ways people can deal with change they don't like or want is to organize to drive a counter challenge to the prevailing force. The discussions around standards are in some ways a first step in that direction. If enough of the smaller organizations came together to offer a higher standard of training, to form a voluntary non-profit professional organization for their instructors, subjected themselves to peer-audits of their training quality, and in other ways demonstrated a commitment to a higher standard than PADI, they could have enough market presence together to force changes opposite of what we currently see.
However, that is not likely to happen for a variety of reasons, not least of which is the perception between those organizations that they must stand against all others in competition. They don't. They could work together to make the imaginary self-governance of the scuba industry a reality.