When I think of Walmart, I think of grocery shopping trips with my mom and sister when I was younger. Specifically, I remember back to school shopping, and being able to find everything we needed at low prices, at a time in our lives during which we were experiencing financial constraints. If my sister and I "behaved," my mom would take us to the toy aisle in the end and we could each pick out a barbie of our choice at the end. As you can see, I have been a loyal Walmart customer for years. I know the aisles are a bit messy sometimes and that the staff is sometimes not as knowledgeable as it should be. But for me, price and convenience are the two most important factors in grocery shopping. And let's face it...Walmart cannot be beat by any of its competitors on both of those advantages. I like being able to go one store and find all of the items I need, quickly and conveniently. Health and fitness is also becoming more important of a priority in my life, and I have noticed that Walmart's shelves have been full of organic items recently. They have the brands I want, and the wide selection of items allows me to experience new products at an affordable price.
- Given the enormous amount of data that Walmart captures, do you think they have been successful at converting into an experience that serves as a competitive advantage for them?
The article demonstrates that Walmart has been able to increase its bottom line through the data it captures. IHowever, it is more important to analyze the information to make sound business decisions, rather than simply capturing data for the sake of doing so. No matter the amount of data that Walmart collects, it is meaningless if it does not increase profits. The example of hurricane season in Florida demonstrates this phenomenon. By knowing what purchases customers made prior to the last hurricane, Walmart was able to better serve its customer's needs. Because, from my own experience, customer service may not be Walmart's greatest strength, inventory takes on greater importance. Having the correct items in stock is important in ensuring Walmart's success, and having all the items at low prices is Walmart's claim to fame. While I know that I could go to Target instead of Walmart, I think that the prices at Target are higher, and that their selection is less comprehensive than Walmart.
- What do you think about the privacy issues associated with all of that data and the amount of personally identifiable data they are able to capture. Does it bother you? Do you trust them with it?
To me, there is not much of a privacy issue when it comes to Walmart's data collection. I shop online frequently and supply websites with my credit card number, and as we discussed in class, cookies already have the
ability to track my the websites I frequent for marketing purposes. I view the privacy concerns with Walmart in a similar light. Though Walmart has the ability to "squeeze data from credit cards," they have no reason to do so. Knowing about my driving record or creditworthiness is of no value to Walmart.
Instead, I actually like the fact that Walmart can capture information about its customers, because then the stores will be better stocked with items that I need at better prices. The more data that Walmart can collect
about me, the more that they are making an effort to learn about me as individual. Besides, the article states multiple times that Walmart "hoards its information excessively." Hence, I do not need to worry about Walmart
releasing my information to third parties. The information helps to shape the Walmart brand, and it would not be in the retailer's interest to distribute the information in any way.
- What impact do you think they are having on their suppliers - making them better and more efficient or driving them too hard and reducing their profitability. Again, try to keep this in the context of technology
I think Walmart is making their suppliers more profitable by exerting pressure for them to meet their sales targets. In Brand Management last year, I learned that aisle space in a retail store with brand recognition such as Walmart, Target, or HEB is an extremely valuable commodity that should not be taken for granted. It is useless for Walmart to keep brands in the store that do not sell well, because there are always other "hot" items that can be increasing the store's profitability. I think Retail-Link is an especially useful tool, so that its suppliers can examine product sales and determine the impact of offering promotions and deals to its customers. Meeting and exceeding goals is what helps to promote growth and encourage creativity, and feeling some amount of pressure from Walmart is only going to better the supplier's product and marketing strategy.
