...snip...
In the real world, if you are competing against men with guns, you need bigger guns. The guy who has eliminated all rivals will have the biggest guns and may be backed by a foreign state. Any new company will be slaughtered easily. So your proposal results in democratic government with all its faults being replaced by dictatorship.
The road to hell is paved with good intentions.
That assumes a binary situation. By your logic the US has already taken over the entire world right and crushed all the sovereign powers who individually have less firepower than the US. Err wait the US hasn't taken over the world?
If there are 10 security entities and the most powerful has 5 units of firepower but the other 9 entities have 1 to 4 units of firepower but combined have 30 then the largest entity isn't going to be able to win by force. Also belligerence by the largest entity will lead to a loss of consumers and thus revenue and thus ability to retain 5 units of firepower.
I understand where you are coming from with the idea of 10 or so court systems but you leave out the important fact that people expect the courts to do what is right and they expect that the court will enforce its decision. Otherwise, they will not pay to use that court.
10 court systems means 10 sets of laws. Where I live, some of them will be Islamic, some Sikh, some Jewish, most will be Common Law. Within the Common Law ones, some will support primogeniture and some won't.
Cases will arise where the laws are different in each system. For example, an Islamic court will discount my witness testimony because I am not a Muslim. A Common Law court will accept it as equal to any other honest man's. If they reach different conclusions, then only the one that can enforce its judgement will survive commercially. So your 10 is down to 9.
Other examples of conflicts are inheritance where a daughter wants to inherit and some courts allow it but some say they follow primogeniture. Debt cases where some courts allow interest to be collected but Jewish courts do not. Again, each dispute will result in 1 system winning and the other losing. The loser will cease trading as no-one will pay a court that can't enforce its judgements and its police may well be dead.
Eventually, you will end up with 1 court system owned by one group of people and they make the law for everyone.
That is dictatorship. Surely you can see that the present system is preferable?