Why Wal-Mart Should Be Considered A Monopoly
             Wal-Mart is obviously a Monopoly. They have found a loop hole that sanctions them to avoid a law resembling horizontal mergers. Federal law should prohibit Wal-Mart from running Sam's Club. Both retail stores are producing and selling similar products which control most of the industry's business. These two companies should not be considered a conglomerate. A conglomerate would be a corporation made up of different companies that operate in diversified fields. Wal-Mart and Sam's Club certainly do not operate in different fields, they sell the same products. The only difference is Sam's Club allows the customer to purchase in larger quantities; however, the customer does not have to purchase all merchandise in large bulk. With the two firms on the same team, analogically suggests the same scenario, as if Wal-Mart were to purchase K-Mart or Target. That motion would be prohibited. If it is against the law to join firms that are producing or selling a similar product, then it should be against the law to make two separate firms. If there is one firm that is already dominating the majority of the industry, then it is not right to have another industry come in to take more.
             The firm is also practicing a theory called predatory pricing. Predatory pricing is when a firm lowers its price to drive out the competitions business. Sometimes this is taken to the extent where the firm is loosing money on the product. They continue to do this until they gain full control of the market. This should scare the people because Wal-Mart is not just an industry that sells one product. They sell everything. Wal-Mart is able to practice predatory pricing and not loose any money. Wal-Mart is so big that they are able to utilize economies of scale. Their colossal size allows them to purchase more and more of certain products from the supplier
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