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heyman87 | Why isn't Wal Mart considered a monopoly? |
They are literally suffocating their competition...Are they just really good at finding loopholes? What's the deal? |
 |
 
Kman
 |
Suffocating ones competition isn't enough to qualify a business as a monopoly... you also have to have and abuse an unreasonable barrier that prevents competition.
For example, AT&T was a monopoly before it was split - it owned all the phone lines; competition was thus virtually impossible.
As much as I dislike Wal-Mart, all they do is distribute other peoples goods more efficiently than everyone else. There's no barrier to setting up a better store and selling the same goods.
Wall mart would have to do things like bully vendors for unfairly favorable contracts or bleed out smaller stores (as in, sell products at a loss just to run the other store out of business, then jack up its prices after) before we could call it a monopoly.
We definitely can't make that case as long as Target is around. |
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Walt D
|
Not a monopoly because they still have competition.This is how they work.
1. move into an area and under price everyone for a while, even if in the short term you loose a little money.
2. once customer base grows and the word of mouth free advertising has made you the first thought of store when people want something, you slowly raise prices.
3. continue to have low price "draws" to keep the mental picture of you as being the low price store.Because of their public image even in poor economic times they are seen as the poor persons friend.
4. keep most employees at part time to save on benefits and wages.
5. be good at both finance and marketing |
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Steve D
 |
A monopoly is a company that is the only company operating in its industry. Wal-Mart has a number of competitors, including Target KMart/Sears, Kohls and a host of smaller, regional firms. Just because Wal-Mart is big and sells things across categories does not make it a monopoly. |
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Hugh K
|
Because they are not a monopoly. |
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Rachel M
 |
Thing is, though they're competition has a hard time keeping up with them, their competition still exists, which makes them not a monopoly. In some countries though, monopolies are not illegal, and in those place Wal-mart is almost certainly a monopoly. |
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Trojan8408
 |
They are in rural, southern America. However, there is such a thing as Cosco and Target. In the southeastern USA, Wal-Mart is the only thing in most rural areas. Once it comes all of the private mom and pop stuff shuts down within 90 days via bankruptcy. |
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