GravityThief wrote:The biggest thing that scares me about Walmart and Amazon is that they have practically become retail monopolies. There have been numerous media reports of Walmart strong-arming manufacturers; agree to sell to Walmart on Walmart's terms (at Walmart's desired prices) or be shut out. That has meant numerous companies have had to decide between agreeing to deal with them or simply closing down shop.
I think saying Wal-Mart is (nearing) a retail monopoly is an overstatement. In home and office goods they have to compete with Target, Home Depot, Staples, and Office Depot. In groceries, they compete with Target, Albertsons, Krogers, among many others. Yes, they have market power, but a lot of companies have that.
Wal-Mart may use their size to negotiate better deals but that's to the benefit of the consumer, and the economy in general. It forces all firms to be competitive. It's not like Wal-Mart is driving up prices for goods consumers don't want - it's the complete opposite. Just like Microsoft accusations from a decade ago- if Microsoft were truly acting as a monopolist, prices for Windows would be 200x higher. Microsoft wasn't a monopolist then (which has become self-evident now), and neither is Walmart.
One day, like all firms, Wal-Mart's competitive edge will become obsolete and other firms will take their place. Wal-Mart will experience the same fate as Sears, Eaton's, Woolworths, K-Mart - once retail titans. The only thing that prevents this natural market evolution is if the government somehow protects them.