What Wal-Mart Knows About Customers' Habits - BLOG 4

I do believe Walmart has been able to utilize their data to create a highly competitive advantage for their company and for their customers. Two ways they have done this is by having an efficient supply chain and doing in-depth marketing research with their technology. They have been able to utilize the knowledge about their customers to create a better shopping experience. Their supply chain is one of the strongest in the market. They’ve created impressive turnaround times, allowing their customers to get their products on time. Less waiting makes a happy customer. The quick turnaround times also ensure customers that the item won’t be out of stock. Available products also make a happy customer. It also helps to retain customers. If it’s out of stock, the customer will just look for it in a competing store like Target. The more often this happens, the more customers will slowly start switching over to a competing store, assuming Walmart never has what they want. Contrary to this, Walmart has done a great job in keeping items available in store or sent to the closest location at a very fast rate. Finally, if they can continue to be efficient in supply chain then they’ll have fewer inventories, which saves money for the company. If they utilize that strategy then they won’t be forced to increase prices in order to earn a profit. Ultimately, this keeps their customers happy by keeping prices low.
On the Walmart privacy issue, I do trust them with my information because until now they have not invaded my privacy. Maybe I’m just a very trusting person, but if the public found out that Walmart was using our information for other purposes, there would be a huge lawsuit against them and they would lose a significant amount of money. I’m sure the reason why they keep their information so secure is to steer away from that. In the article, they clearly state that the information they receive is used to figure out what items are being bought. They are less concerned in making the connection between item and consumer. What is more important is the connection between certain items being bought simultaneously and how they can price each item to increase profit, yet keep the overall amount low. Since Walmart’s focus is not on the customer but rather the things they are buying then they have no reason to utilize my personal information for anything else. Unless my information can be accessed by strangers, then will I be more nervous. As for now, I trust that their security measures are strong enough to keep my information away from uncertified people. If the security starts becoming unsafe or not up-to-date, then I’ll definitely be more worried.
In regards to the question about supplier’s business relationship with Walmart, I believe they are increasing profitability for their manufacturers. If the technology being used is strictly to increase efficiency and allow better communication between suppliers and Walmart, then I believe the suppliers are profiting from this efficient supply chain. If it becomes an issue where they are forcing their suppliers to do more than they can handle then it would become a negative impact for the suppliers. Also, if the situation was not about supply chain efficiency but rather about the prices of products suppliers are selling, then suppliers would be in a difficult position. Unable to deny the requests of one of the largest players in the market, suppliers would have to comply or lose more money by losing Walmart as an ally. The article says that with the new technology they’ve built, they have been able to increase efficiency and ultimately increase turnaround time. This should benefit the manufacturers, not hurt them.