The document discusses the market structures of competition, specifically focusing on Wal-Mart as a case study. It categorizes Wal-Mart primarily as a monopolistic competitor, yet suggests it also exhibits characteristics of an oligopoly due to its dominance in the general merchandise retailing industry. The document highlights how Wal-Mart's pricing strategies and supplier dynamics affect demand and supply within the market.

1. TYPES OF COMPETITION Introduction to Business 2/2009

2. MARKET STRUCTURE PERFECT MONOPOLISTIC OLIGOPOLY MONOPOLY

3. PERFECT

4. PERFECT

5. MONOPOLISTIC

6. MONOPOLISTIC

7. OLIGOPOLY

8. OLIGOPOLY

9. MONOPOLY

10. MONOPOLY A monopoly is a company that dominates and controls a specific industry.

11. QUESTIONS & ANSWERS From Wal-Mart ‘s case study

12. 1. What industry Wal-Mart is competing in? GENERAL MERCHANDISE RETAILING INDUSTRY

13. 2. Which market structure should Wal-Mart be considered? Monopolistic There are a lot of retailers (competitors) like Wal-Mart in the market. It is easy to be general merchandise retailers. Wal-Mart can control over the price by dumping it down while others(small retailers) cannot. The products are differentiated by product testing tactics to let the customers perceived that they are The new, improved Great Value products and redesigning Great Value packaging graphics although it may be still similar or same. According to theory

14. Wal-Mart might be considered as “Oligopoly” Wal- Mart is the 1 st in retailing market . In a world where most retailers are categorized as having a monopolistic competition market structure, Wal-Mart Stores Inc. appears to have an oligopoly market structure . Nevertheless, because there are far too many retailers to deal with, then they also have a monopolistic competition market structure. Regardless, Wal-Mart would rather have it this way because it has not hurt them at all by having competition.

15. 3. Which determinant of demand/supply is affected causing change in demand/supply of products in the general merchandise industry? How? Explain and draw the diagram to illustrate the effect. PRICE DETERMINANT

16. 4. As the result of Wal-Mart’s action, which determinant of demand/supply is affected causing change in demand/supply of superior products ? How? Explain and draw the diagram to illustrate the effect.

17. EXAMPLE OF EFFECTS from Wal-Mart to Superior Products Wal-Mart has squeezed suppliers till they scream, and forced them to move jobs abroad to keep cutting costs