Wal-Mart’s Business Strategy in eCommerce Essay Example

shift in consumer behavior has resulted in an increase in convenience stores like Seven Eleven and Circle K in recent years. These smaller stores prioritize time-saving options over saving money, which is more important for some consumers.

Furthermore, customers at Wall-Mart are frustrated with long queues at checkout counters. To address this issue, they plan to open 270 to 300 smaller stores while also focusing on strengthening their online business to cater to the rising number of online shoppers.

Wall-Mart aims to adapt and respond to changing consumer preferences by enhancing its online presence and offering more convenience through smaller store formats similar to Amazon's transformation from an online bookstore into today's largest online retailer.

Amazon has revolutionized people's shopping habits and lifestyles by providing a wide range of products online for those with limited time or unable to visit physical stores.With its reasonable prices, excellent customer service, various delivery options, convenient shopping without time constraints, guaranteed product quality, and easy price comparison on their website, Amazon has presented a significant challenge to Wall-Mart's business strategy. In terms of market value data this year alone, Amazon has surpassed Wall-Mart by generating $109.7 billion in shareholder wealth and being worth $254.8 billion – 30% more than Wall-Mart's market value. Despite currently operating at a loss while Wall-Mart remains profitable, investors are willing to pay more for Amazon's earnings due to perceiving it as a faster-growing model.

In the competitive e-commerce environment, Wall-Mart faces various challenges hindering its development; however, information technology (IT) can help address these challenges and support growth. IT has already benefited Wall-Mart in multiple ways. One notable improvement is through the implementation of RIFF Technology which significantly

enhances Walter's Supply Chain Management system by utilizing data stored on tags attached to products or objects.This technology enables easier identification and tracking of merchandise throughout the supply chain process. Wall-Mart has been using RIFF for years now and has experienced substantial advantages as a result.The use of RIFF tags initially designed for tracking pallets of merchandise in the supply chain provides numerous advantages over traditional barcodes.The utilization of tags with the ability to store more data, provide real-time information, and be scanned from a distance without requiring a clear line of sight has brought significant benefits to Wall-Mart. This includes restocking items tagged with RIFF technology at three times the speed of non-tagged items, resulting in reduced excess inventory and nearly one-third fewer instances of out-of-stock occurrences. Wall-Mart's commitment to adopting and emphasizing new technologies, such as RIFF Technology, has played a crucial role in enhancing customer service for the world's largest retailer. Additionally, innovations within the RIFF industry have benefited Wall-Mart in areas like payment processing, returns processing, and asset tracking—improving services and overcoming challenges. Whether it is through in-store purchases or online activity, Wall-Mart remains consistently among the top retailers worldwide. Interestingly enough, research reveals that Wall-Mart employs more people than some retailers have as customers (How Big Data Analysis helped increase Wall-Mart's Sales turnover?015). The implementation of Big Data technology makes managing a massive company like Wall-Mart easier.Wall-Mart has been utilizing Big Data analytics for a considerable amount of time, establishing a comprehensive big data ecosystem that has played a significant role in their success. By leveraging big data and making informed decisions, they have achieved a notable 10% to 15%

increase in online sales, resulting in an extra $1 billion revenue. This growth is made possible through personalized tracking and targeting of individual consumers' unique needs by collecting data on their purchases, addresses, and preferences through the in-store Free Wi-Fi service. A dedicated Big Data team extensively analyzes various actions on the website, including consumer purchases online and in-store, popular trends on Twitter, and the impact of local weather changes on buying patterns. Utilizing intelligent analysis with big data algorithms allows Wall-Mart to gain meaningful insights that enhance the personalized shopping experience for millions of customers. Furthermore, social media data is relied upon to identify trending products that are then introduced into stores. Additionally, specialized recommendations based on customers' purchase history are provided through Big Data analysis of credit card purchases. Overall, this utilization of Big Data technology significantly contributes to Wall-Mart's increase in sales turnover.Social media platforms such as Facebook, Twitter, and LinkedIn are crucial for informing Wall-Mart's decision-making process. These platforms provide feedback that is used to shape the company's business strategies. In addition to customer engagement and the provision of special discounts, Wall-Mart utilizes social media to expand its reach. The integration of Social Genome technology further enhances Wall-Mart's understanding of its customer base by combining various types of data including public website data, social media data, contact information, email addresses, and customer purchasing data. By analyzing shared information about movies, this solution enables Wall-Mart to comprehend specific references made by customers.

E-commerce plays a significant role in addressing Wall-Mart's challenges. According to Bob Cramer (2014), the convenience offered by online shopping and the growing prevalence of smartphone usage have caused a shift

in market share from physical retailers to online businesses. Capitalizing on these trends could potentially improve Wall-Mart's recent weak sales performance. With people increasingly favoring convenient shopping options and the substantial growth in smartphone use, e-commerce businesses are experiencing faster growth compared to traditional brick-and-mortar stores. This paper discusses how Wall-Mart is adapting its business strategy in response to the e-commerce environment and striving to keep up with changing trends in order to enhance their overall business performance.The text highlights the advantages of smartphones and e-commerce for users, specifically mentioning Wall-Mart's opportunity to expand its online business and compete with smaller retailers. It emphasizes the convenience of Wall-Mart's online shop, particularly their "buy online and pick from store" strategy. The text also mentions the success of Walter's Copycat app, which suggests gifts based on social data and provides links to Wall-Mart products. It acknowledges that Wall-Mart was late in realizing the importance of the online retail space but stresses the need for them to focus on e-commerce strategy going forward. Lastly, it discusses how Wall-Mart utilizes various technologies such as a data warehouse, retail link system, electronic data interchange, and supply chain management system to meet customer demands.The research paper primarily examines how Wall-Mart employs Information Technology in four key areas: HER management, technology development, business logistics, and marketing services. Additionally, Wall-Mart currently confronts three major challenges – price reassurance, changing customer shopping habits, and competition with Amazon's dominance.