Walmart Is A Monopoly

Walmart has monopolized the grocery business across the United States and should be forced to sell off some of its stores, an advocacy group charged in a scathing report released Thursday. Walmart is the nation’s largest grocer. It controls around a fifth of the grocery industry nationwide.

Is Walmart A Monopoly In 2022?

Although Walmart has several traits of a monopoly due to its dominance in the retail industry, however, it’s still not considered one as of 2022. For example, companies that offer similar products like Costco, Amazon, and Target can still compete with Walmart. Since there’s monopolistic competition, Walmart is not considered a true monopoly.

If you are still unsure if Walmart is a monopoly, read along to see what I found out!

What Is A Monopoly Market Structure?

A monopoly is a market structure in which only one company sells a product, and there are no close substitutes for that product.

That said, there are four types of monopolies, including:

Natural Monopolies

These companies arise when their supply curves exceed demand curves, and they can capture economies of scale.

An excellent example of this would be the electricity industry, where the cost of additional production decreases as the quantity produced increases.

Legal Or Government Monopolies

These companies arise when a patent or copyright law restricts competition for a certain period on an innovative product or process, such as pharmaceuticals and drugs.

Technological Monopolies

Technological monopolies occur when the production of a good is controlled by one company, like Apple iPhones.

Geographic Monopolies

A geographic trust arises when there are no other producers of a good or service in an area, like the NFL in the US.

Why isn’t Walmart a Monopoly?

A Monopoly is unique. Google is a monopoly because there is no other search engine that can compete with Google because of its size, revenue, and service quality, but the same isn’t true about Walmart. Walmart has an advantage in the retail business because of its size and smooth supply chain. It can offer heavy discounts and still make profits.

Let’s study the features of a Monopoly company to understand why Walmart isn’t a Monopoly.


Why is Walmart allowed to be a monopoly?

A major advantage that Walmart holds over its competitors is price. Monopolies are price makers and Walmart is able to dictate prices to its suppliers. 6 Walmart looks to hire suppliers who will efficiently work with them, as well as help expand their business.

What type of monopoly is Walmart?

For other grocery retailers which are trying to come in to the market, are simply forced out of the way by the giant corporation making Walmart a monopoly in the grocery retail business.

What type of market is Walmart?

Large retail stores like Walmart are an example of an oligopoly market structure.

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