Melanie Betty
Edwin Melgar-Mejia
Diego Garcia
Keir Tilford
University of Redlands
School of Business
Abstract
IT systems are the heart of retail operations and hence play a central role in alleviating pressure points in the retail sector. The converse also holds true—retailers who do not manage their IT landscape effectively will find that, in time, the IT systems become part of the problem rather than components of the solution. Wal-Mart, “America’s low price leader”, recognizes this challenge and has decided to be part of the solution. This paper will examine the IT infrastructure within the merchandising retail space while focusing attention on Wal-Mart’s utilization of decision support systems and enterprise applications as it impacts and counteracts Porter’s Five Forces. The paper will also speculate on the future use of IT at Wal-Mart during the next 2-3 years as Wal-Mart continues to strengthen its position in the retail space.
Wal-Mart and its usage of IT
Every once in a generation a person or an entity comes along that has a profound effect on society. In the game of basketball, Michael Jordan changed the game with his unwavering ability to make his teammates better, which led to six NBA championships and numerous Most Valuable Player (MVP) awards. His impact and influence alone defined a generation of people who wanted to be ‘like Mike”. In the game of golf, Tiger Woods too changed the game by his super human play, which also afforded him many tournament championships and opened up the game to a whole new demographic. Like Michael Jordan, Tiger Woods infused energy into the game of golf and elevated it to a place that it had never been before. Resembling a phoenix that rises from the ashes, Wal-Mart has been that game changer in the retail space. By reaching across the aisles and investing in technology, Wal-Mart has put themselves in the best position possible to meet shareholder obligations of increased
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