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Assignment:
Define the industry related to the product or service produced by the company you selected for your microeconomic/macroeconomic analysis papers. (Walmart Grocery/Grocery Service)
Consider the following questions: What are the main companies in the industry? What is the level of market concentration in the industry? To what extent are the products/services from this industry homogenous? How would you characterize the barriers to entry in the industry? How would you characterize the market structure of this industry? How does the market structure affect the business strategy and performance of the company you selected? To what extent may the market structure in the industry lead firms to engage in anticompetitive behaviors?
I am having some trouble with my interpretation of the market structure for Walmart grocery & grocery service. According to some research grocery stores market structures are most commonly considered monopolistic. However, some part of me wants to say perfect competition because you can find food/produce/etc. at numerous other locations and if you drive your prices up a consumer could just go elsewhere for their groceries. Yet that doesn't go with the inelastic supply and demand theory.
Walmart is known for their lower prices which also doesn't coincide with a perfect competitive market either. So I'm researching and reading in the textbook to get my thoughts straight!
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