Why competitor’s sales higher than our potential demand even though they have higher price and lower product image and quality?

Why are some company’s sales higher than our potential demand even though they have higher price and lower product image and quality?

• Why some company’s sales is higher than your potential demand?
  Could it be because they have a higher potential demand?
• Why some company’s price is higher and product image lower and still sells more than your potential demand?
  Note that investment in the previous periods still have effect on potential demand into the later periods in the simulation game, and price elasticity could neutralize the differential between the competitor’s higher price and your lower price.