As noted in the “What Wal-Mart Knows About Customers’ Habits,” by Constance Hays, Wal-Mart does have vast amounts of detail-rich data that can be used to create a competitively advantageous experience for customers. Utilizing its “predictive technology,” Wal-Mart can anticipate the needs and wants of customers which will enable Wal-Mart to make the necessary preparations in its stores well in advance of any particular situation (Hays).
For example, the article mentions that toaster pastries and beer are top-selling items during the hurricane season. Wal-Mart’s knowledge of this little tidbit of information allows for it to cater more specifically to customers’ needs and wants at the right places and at the right times. This ability does make Wal-Mart successful in achieving a competitive advantage because its resources and predominance enable Wal-Mart to move quickly and effectively.
Although Wal-Mart has been successful at capturing vast amounts of data that can be used to cater to the needs of customers, its possession of personally identifiable data is at odds with the issue of protecting privacy. The ability of Wal-Mart to gain access to my personal information does bother me to a certain extent.
Even though I am willing to relinquish some of my personal data in order to make purchases at stores such as Wal-Mart, I would be very uncomfortable with the idea of Wal-Mart using that data to delve into my personal life or even worse would be the thought of that data falling into the wrong hands. I would be much more comfortable if Wal-Mart expressed its responsibility and accountability both financially and legally with its possession of personally identifiable data.
As noted in the article, Wal-Mart can be using its technology to enhance its supply chain and ensure that it has neither too much nor not enough inventory (Hays). As Hays mentioned, Wal-Mart’s new approach to the supply chain will affect suppliers, but none are likely to complain. The ability of Wal-Mart to place “commands” on the economy and have such an authoritative presence in our economic structure is phenomenal and in large part due to its effective and efficient use of its technology and data.
Wal-Mart can use this power for other areas such as profiting on a social level and pouring back into its local communities. Wal-Mart can use its sophisticated technology to guide its actions such as supplying relief to victims of hurricanes or other natural disasters, responding to specific needs of certain people, victims of certain circumstances, etc. Wal-Mart possesses the information and resources to be an effective agent of social change.
Hays mentioned that Wal-Mart does not necessarily have to charge the lowest possible price for all of their items. If Wal-Mart focuses on reducing the price of specific items, then the consumer can still save a considerable amount on their cart as a whole. The profits attained from this model can be used to implement some sort of loyalty program or way of getting to know their customers on a personal level. Wal-Mart would now be able to use all of its data and technology to benefit the community and make tangible changes for social profit. In addition, this new level of trust and intimacy that would result from such socially and personally beneficial programs would definitely make me feel a lot more comfortable with handing over my personally identifiable information to Wal-Mart.
Wal-Mart’s use of technology and possession of vast amounts of data open up a world of limitless possibilities, both good and bad. If Wal-Mart can use these tools responsibly and with discernment, it stands to gain a much greater chance of creating valuable experiences for customers and developing a much deeper relationship with its customers, suppliers, and other firms/organizations that are involved with and impacted by this increasingly powerful entity known as Wal-Mart.
