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This presentation is made for " Introduction to business" course. It is about Types of competitions in sales market or Market Structure which has 4 types ; Perfect, Monopolistic, Oligopoly, and Monopoly. It includes case study of " Wal-Mart " as well. ( but i'm not sure if it's accurate )File Format : PPT Power Point 2003 or Higher.Miss Nannapat K. ( MUM )Tim3flies
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TYPES OF COMPETITION
Introduction to Business
2/2009
MARKET STRUCTURE
PERFECT
MONOPOLISTIC
OLIGOPOLY
MONOPOLY
PERFECT
PERFECT
MONOPOLISTIC
MONOPOLISTIC
OLIGOPOLY
OLIGOPOLY
MONOPOLY
MONOPOLY
A monopoly is a company that
dominates and controls a specific industry.
QUESTIONS & ANSWERS
From Wal-Mart ‘s case study
1. What industry Wal-Mart
is competing in?
GENERAL MERCHANDISE
RETAILING INDUSTRY
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
Wal-Mart might be considered as “Oligopoly”
Wal- Mart is the 1st 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.
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 DETERMINAN
T
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.
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
