The company employed twice as many people and owned about 5 times more retail space than its top 3 rivals. No other direct competitor, except Amazonhas made it to the Forbes list of the top 50 most valuable brands. The company can share its fixed costs over many products, which makes Walmart one of the cheapest places to shop.
Throughout the years, Wal-Mart has changed its business practices to take advantage of the ever-changing global digital economy. By introducing several uses of information technology and information systems, the company started a track which would lead them into becoming one of the nation's largest and most profitable companies.
Wal-Mart's past, present, and future have all been affected by the deployment and integration of information technology.
During Wal-Mart's early years, the use of technology was very limited, which restricted growth and profit. InWal-Mart was founded by Sam Walton in the small town of Rogers, Arkansas, and by thirty stores were in operation Wal-Mart was built upon the philosophy of providing value for the customer and empowering employees 4.
By implementing this belief, byWal-Mart reached the level of one billion dollars in annual sales faster than any other company Throughout the s, David Glass, who would succeed Sam Walton, insisted that the company invest in more advanced merchandise-tracking and distribution systems in order to handle the increase in sales as the number of stores increased 7.
These systems would be needed for Wal-Mart to go beyond its localized stores in the South and Midwest. Byninety percent of Wal-Mart stores had barcode scanning capability, which aided in tracking of merchandise While this new system reduced costs, employees who used to stamp items by hand were displaced, and there were several occasions in which the bar code scanners did not accurately scan the price of items 4.
By the late s, with the development of "supercenters" that combined a supermarket with general merchandise, it was clear that Wal-Mart had the need for connectivity among their information systems in order to improve their effectiveness and efficiency 7. Starting in the early s, Wal-Mart aggressively developed advanced information technology systems that have improved efficiency and increased profits.
According to BuisnessWeek Magazine, "Wal-Mart's aggressive adoption of information technology to improve logistics and back-office efficiency has also been a major driver of productivity" 8.
For example, every Wal-Mart store is connected via a secure private network to the company's headquarters in Arkansas. Through this, the company is able to track the sales volume of each item at each store, and then reorder to replenish the inventory for that item at Wal-Mart stores across the country 3.
Instead of having to manually track items, information technology has allowed this process to be quicker and less expensive. Wal-Mart shares its sales data with its suppliers, and has recently implemented a web-based product, Retail Link, that allows the company and the suppliers to monitor what products are selling and where they are selling In this way suppliers are able to anticipate Wal-Mart's restocking needs.
Wal-Mart uses these telecommunications techniques to allow Wal-Mart and its suppliers to stay connected and communicate electronically. Wal-Mart also uses computerized techniques in their warehouses to ship items faster, as many goods arrive and leave without ever sitting on a shelf 4. On a smaller scale, Wal-Mart uses information systems to make sure that in any given store, the number of staff matches the current needs in the store 6.
By utilizing these systems, Wal-Mart has been able to collect, transform, and distribute information within the company. Wal-Mart utilizes a global information infrastructure in order to provide a framework for new services and activities based on information acquired worldwide.
With over 1, stores outside of the United States, Wal-Mart has proven itself as an international company With the development new stores overseas, Wal-Mart moved to increase its investment in logistics capabilities.
Wal-Mart uses globally the same technology it has deployed in the United States 5. The following table demonstrates the effect of Wal-Mart internationally: One of Wal-Mart's greatest jumps into the digital economy came with the introduction of Wal-Mart Online in The opening of an online presence marked the beginning of Wal-Mart's move to e-commerce.
Wal-Mart's first website, however, failed to capture the online retail market as the company had hoped. In a Media Metrix survey, Wal-Mart was ranked 47 out of 50 retail sites retail sites based on the number of visitors The site had several problems associated with it.Wal-Mart Company and Industry Analysis.
Wal-Mart is an American public corporation that operates in the retail and department store industry. It is number one ranked company on the Fortune and is considered an unstoppable and unavoidable force in the retail industry according to Hoover’s.
Wal-Mart Case Study Essay Sample.
It opened in by Sam Walton, Wal-Mart has become the largest retailer in the United States, and with over 3, stores Wal-Mart continues to be successful.
Walmart Information Systems Founded in by Sam Walton, Walmart has grown to be the largest retailer on the globe. Driven by Mr. Walton’s 10 rules to build a business, Walmart promises to “save people money so they can live better (Wal-Mart Stores, Inc., )”.
Walmart, Information System Essay BMAN Introduction In this essay, Wal-Mart was chosen to be the case to analysis.
Firstly, some basic concepts will be mentioned, including business strategy, IS strategy and IT strategy, and Wal-Mart will be introduced briefly.
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Walmart Information Systems decisions support systems, and business intelligence systems into their everyday business processes. One major system that links the entire supply chain to the Walmart enterprise, with the use of the RFID system, is the supply-chain management system that Walmart utilizes.