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Case Study: Walmart

Group 0011
BUS 5114 - Management Information Systems and Technology
Dr. Farookh Shaikh
March 24, 2024
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Introduction

In today's rapidly evolving retail landscape, maintaining a competitive edge requires

more than just traditional business strategies; it necessitates a profound integration of technology

and innovative information systems. Walmart, as a leading global retailer, has consistently

leveraged these tools to not only sustain but also enhance its market dominance. This case report

examines how Walmart has successfully utilized technology and information systems to create a

sustainable competitive advantage.

Key Issues and Underlying Issues

Key Issues:

• Sustaining Competitive Advantage: Walmart needs to continually enhance its

technology and information systems to sustain its market leadership against

competitors like Amazon and others in the fast-evolving retail landscape.

• Adaptation to Rapid Technological Changes: The rapid advancement of

technology requires Walmart to keep pace and effectively integrate new

technologies to maintain its competitive edge.

Underlying Issues:

• Investment in Innovation: High costs and significant investments are required to

innovate and implement new technologies, which might not always yield

immediate or significant returns.

• Data Utilization: Effective use of the massive data generated from its operations

can be challenging but is crucial for improving operational efficiency and

customer experience.
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These issues relate to several business principles, including strategic management for

sustaining competitive advantage, change management in adapting to technological

advancements, and financial management concerning the allocation of resources to technology

investments.

Facts Affecting These Issues

Walmart has invested heavily in technology, such as $14 billion in automation,

technology enhancements, and customer-facing initiatives to compete with Amazon (Morgan,

2023). Also, Retail Link System links suppliers directly with Walmart’s inventory systems,

providing real-time data that enhances inventory management and efficiency (Bourgeois, 2019).

In addition, Walmart uses technology to enhance customer relationships through its mobile app,

offering features like store maps and payment systems, which improve the shopping experience

(Kumar & Reinartz, 2016).

These facts underscore the importance of robust information systems and technological

adaptations in maintaining competitive advantage and responding effectively to market demands.

Tentative Solution and Implementation

Proposed Solution:

• Enhance Predictive Analytics Capabilities: Invest in advanced predictive

analytics to better forecast demand, optimize inventory, and personalize customer

experiences.

• Expand AI and Machine Learning Integration: Further integrate AI in

customer service (chatbots), inventory management (predictive stocking), and

operational efficiencies (logistic optimizations).

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• Blockchain for Supply Chain Transparency: Implement blockchain technology

to ensure product authenticity and improve supply chain transparency.

Implementation Steps:

• Evaluate current technology and information system capabilities and identify

areas for improvement.

• Start with pilot programs for new technological initiatives to test their

effectiveness before full-scale implementation.

• Provide comprehensive training for staff on new systems and technologies to

ensure smooth integration.

• Fully integrate successful pilots into regular operations and continuously monitor

their performance with predefined KPIs.

Drawing on knowledge from reading and coursework, these actions are designed to

leverage technology to improve efficiency, customer satisfaction, and ultimately, profitability.

Follow-up and Contingency Plans

Walmart should conduct regular reviews of the implemented technologies using

performance metrics such as cost savings, speed of delivery, customer satisfaction ratings, and

sales data. They should also establish robust feedback mechanisms to gather insights from

employees and customers on the new systems.

In regards to contingency plans, if the new systems do not meet performance

expectations, adjustments will be needed, which might include enhancements to features or even

overhauling certain processes. In addition, the company should be prepared to explore alternative

technologies or vendors if the initial choices do not yield the expected benefits.
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Success can be monitored through improved efficiency metrics, increased customer

satisfaction and loyalty scores, and ultimately, a strengthened market position. If these are not

met, it would be crucial to reassess the technological integrations and make necessary

adjustments.

In conclusion, Walmart’s strategic use of information systems and technology has played

a crucial role in reinforcing its position as a leader in the global retail market. By effectively

integrating advanced technologies such as the Retail Link system and harnessing the power of

data analytics, Walmart has not only streamlined its operations but also enhanced customer

relationships and maintained cost leadership. These technological initiatives have allowed

Walmart to respond swiftly to market changes and customer needs, thereby maintaining a

sustainable competitive advantage. Moving forward, Walmart's continued focus on innovation

and adaptation to emerging technologies will be vital in sustaining its market dominance and

responding to the competitive pressures of the retail industry. This case exemplifies the

transformative power of technology in retail, providing valuable insights for other businesses

looking to leverage information systems for strategic advantage.

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References

Bourgeois, D. T. (2019). Information Systems for Business and Beyond. Saylor.org.

https://digitalcommons.biola.edu/cgi/viewcontent.cgi?article=1000&context=open-

textbooks

Kumar, V., & Reinartz, W. (2016). Customer Relationship Management: Concept, Strategy, and

Tools. Springer, Berlin.

Morgan, B. (2023). Walmart vs. Amazon: who wins the retail battle In 2023? Forbes.

https://www.forbes.com/sites/blakemorgan/2023/07/10/walmart-vs-amazon-who-wins-

the-retail-battle-in-2023/?sh=4f8072968fe3

Mukhopadhyay, T., Kekre, S., & Kalathur, S. (1995). Business value of information technology:

A study of electronic data interchange. MIS Quarterly, 19(2), 137-156.

Nassauer, S. (2015). Walmart to boost e-commerce spending. The Wall Street Journal.