Marion Technical College

Analysis Paper

Ben Kaster
ECN2000
Prof. Albertini
4/15/24
 In the United States, the free-market economy dominates American corporations, and

corporations compete with each other to determine who comes out on top with the best products

and services. In the retail sector especially, there are many different stores that are constantly

fighting with each other over prices, convenience, and bulk purchasing. For example, a

corporation we will be looking at, Kroger, is one of multiple grocery stores across the country

that have many different competitors in the same exact region. In Delaware (city), Kroger

competes with Aldi, Meijer, BJ’s, and Walmart in the same general area.

The first company we will be looking at is Kroger. Kroger is a grocery store chain

located in the Eastern midwest United States, the south, as well as a couple of locations in

Arizona (HasData 2024). Kroger is known for being the very first grocery store in the United

States to operate a bakery, deli, and grocery store under the same roof along with manufacturing

store-brand goods (Informa 2024). According to CB Insights, a company research website,

Kroger has many competitors. A few examples are Albertsons; a food and drug retailer, Whole

Foods Market; an organic food market, and Costco; a bulk warehouse goods dealer. These stores

are similar to Kroger because they sell groceries and food products within the supermarket

competition. All of these stores have shares within Kroger’s market, and have geographical and

product similarities. Externality-wise, Kroger has a Zero Hunger / Zero Waste commitment

which “aim[s] to drive positive impacts for people and our planet by increasing access to fresh,

affordable food … reducing emissions, waste, and food waste” (Kroger 2024).

The second company we'll be discussing is Walmart. Walmart is a superstore partially

within the supermarket competition. Walmart stores are everywhere in the United States,
especially being known for their locations in rural areas. Walmart sells groceries as well as a

multitude of products, such as toys, garden supplies, clothing, appliances, furniture, technology,

and much more. This store is practically known as a location that has anything the consumer

needs. Walmart is involved in the supermarket and department store markets (US Securities and

Exchange Commission 2020). According to The Business Model Analyst, Walmart mainly

competes with Target, Costco, Kroger, and Kohls. These companies have aspects in common

with Walmart, such as Target and Kohls’ clothing as well as Costco and Kroger’s groceries.

Walmart has an interesting example of an externality, because according to Time Magazine,

homes built in a specific radius of a Walmart store see increases in their property value.

However, Investopedia states that ‘the Walmart effect’ is a term to refer to the economic impact

felt by local businesses when a corporation like Walmart opens nearby. Department store goods

are replaced by local businesses for a lower price.

Finally, the last product we will be discussing is Whirlpool. Whirlpool is a kitchen and

laundry product company, which is known for their dishwashers, refrigerators, and laundry

machines/dryers. This company is in the home appliance market, for manufacturing and

marketing. Some main competitors are Samsung and LG (MBA Skool). Each of these companies

are involved within the home appliance market, as they produce home appliances like televisions

and dishwashers. Whirlpool shows examples of positive externality by creating a commitment of

net zero emissions within plants and operations by 2030. According to the corporation, they were

the first appliance manufacturer to set an emissions reduction target (Whirlpool Corporation).

They are currently working on fixing a negative externality, which is their single-use plastic

packaging.
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