Answer to Question #275346 in Management for Elisa

Question

Describe the different forms of data and the role of data warehousing in Walmart. In your analysis, you should evaluate the current Information Systems and provide recommendations to the board of directors about big data solutions. In order to fully answer the question, a detailed description of the proposed solution is needed providing the advantages and disadvantages of the system in response to Amazon’s strategy.

Answer 1

Walmart’s biggest strength over its competitors and suppliers are economies of scale, efficient and effective use of resources, implementation of best practices and huge operating margins. These strengths are used to avoid threats of low prices and high quality from its competitors while less experimental risk used to penetrate market and grab more market share than its competitors. As compared to Walmart, Amazon’s biggest strength over its competitors are largest inventory selection and high number of third party sellers that help to maintain low cost structure in Amazon for the purpose of getting competitive advantage over its competitors by providing low prices high quality product to attract more customers.

VRIO analysis of Walmart’s indicates its core competencies such as market power over suppliers and competitors, success of new practices, less risk associates with new experiments, effective resource management and economies of scales. VRIO framework for Amazon indicates its core competencies such as low cost structure, unique selection process, use of third party in selling process and synergies from local competitors and suppliers.

. Walmart’s main focus is on cost leadership strategies that help it to make high quality lower priced products in order to get competitive advantage over competitors. As compared to Walmart’s business strategy, Amazon is pursuing corporate strategy. Corporate strategy used to boost up revenues ultimately company’s overall profitability. In corporate strategy, Amazon’s more focus is towards diversification strategies. Amazon Incorporation has been shifting its trend from click and mortar position to brick and mortar one.

Walmart Incorporation’s main problem is slowly and gradually taking over of offline retail consumer market by Amazon Incorporation. By using strategy factor from 7 s factors, Walmart can overcome this threat. For this purpose, Walmart should focus on its inventory management that will reduce the shortage and excess of inventory at any given time in a year. To manage its inventory, Walmart’s should implement lean operations and Just in Time (JIT) inventory management tool with collaboration of its suppliers and subsequent retailers.