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Innovating
Walmart
Roopali Aneja, Aravind Gopalakrishnan, Briana Lemon, Sohan Rane, Praveen Sundar
Wal-Mart in Numbers
● 11,000 stores
● 27 countries
● $15 billion annual revenue
● 2 million employees
● Market Share: 63%
● Closest Competitor: Costco (17%)
Business Strategy
● Maintain Cost Leadership
● Product Differentiation
● Control of IS / Tech Innovation
● Enterprise-wide Customer Satisfaction
IS Strategy Triangle
Porter’s Five Forces
Industry Analysis
D’Aveni’s Hypercompetition (7’S)
1. Superior Stakeholder Satisfaction
2. Strategic Soothsaying
3. Positioning for Speed
4. Positioning for Surprise
5. Shifting the Rules of Competition
6. Signaling Strategic Intent
7. Simultaneous and Sequential Strategic Thrusts
Firm Analysis
Dynamic Capabilities:
● Business model - Reduce costs of supply chains
● Successful inventory & vendor management
● Supply Chain Management
● Customer Relationship Management
● Local market outlets (US) with outside retailer
● Use of NodeJS for mobile applications
Alignment With Business Strategy
● Applications - Cost Leadership
● Infrastructure - Enterprise-Wide
Customer Satisfaction
● IS Organization - Cost Leadership
● Outsourcing - Tech Innovation
● Governance Style - Product
Differentiation
Internet of Things
● Sensors
● Connectivity
● People
● Processes
Internet of Things - Example
Business Strategy : Enterprise-wide customer satisfaction
Gartner’s Hype Chart
IoT Maturity - 5~10 years
Documents: Devices:
Source: Visual Capitalist
A Value-Added Solution
Empty Shelves
Grumpy Customers
Understaffed Stores
$3 Billion Opportunity
To Adopt or Not Adopt?
1984: Barcode & Satellites
2003: RFID
2015: IoT?
QUESTIONS?

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