Please Read The Article On Values And Disciplines
Please Read The Articlevalue Disciplinesthat Explains How Companies Cr
Please read the article Value Disciplines that explains how companies create value for their customers. After reading the article, identify a company that is focused on either: (a) the customer experience (customer intimacy), (b) the most innovative products (product leadership), or (c) lowest cost (operational excellence). Do NOT list a company posted by another student or one that is mentioned in the article. Explain why you chose a particular company. Discuss how IT could be used by the company to support its strategic focus. Cite your sources. Internet sources are OK if you provide the hyperlink.
Paper For Above instruction
Understanding how companies create value for their customers is fundamental to strategic management and competitive advantage. The framework of value disciplines—cost leadership, product leadership, and customer intimacy—provides a useful lens for analyzing corporate strategies. This paper will focus on a company that exemplifies the strategic emphasis on operational excellence—specifically, Walmart, the leading global retail giant renowned for its lowest-cost strategy—and will explore how information technology (IT) supports its strategic focus.
Walmart is undeniably a leader in operational excellence, characterized by its relentless focus on reducing costs, streamlining operations, and providing consistent value to customers through low prices. The company's strategic emphasis on cost leadership stems from its commitment to efficiency in supply chain management, inventory control, and process optimization. Recognizing the importance of technology in maintaining its competitive edge, Walmart has heavily invested in IT systems to sustain its operational excellence.
Primarily, Walmart's supply chain management system exemplifies how IT supports its cost leadership strategy. The company utilizes an advanced Enterprise Resource Planning (ERP) system that integrates ordering, inventory management, and logistics across its global network. This integration minimizes excess inventory, reduces waste, and accelerates the replenishment process, ultimately lowering operational costs (Bowersox, Closs, & Cooper, 2013). Walmart pioneered the use of Electronic Data Interchange (EDI) technology, enabling real-time data transmission with its suppliers for efficient replenishment and inventory management (Grewal & Levy, 2014).
Furthermore, Walmart employs sophisticated data analytics and point-of-sale (POS) systems to monitor consumer purchasing patterns and optimize stock levels. The adoption of shelf scanning robots and automated checkouts further reduces labor costs while maintaining efficient customer service (Shankar et al., 2020). These technological innovations allow Walmart to predict demand accurately, avoid stockouts, and reduce excess inventory, all of which contribute to its low-cost structure.
In addition, Walmart's integration of IT has facilitated a highly efficient logistics network. The company operates a vast fleet of trucks and distribution centers interconnected through an advanced logistics management system. This system enables real-time tracking of shipments, route optimization, and efficient scheduling, decreasing transportation costs and delivery times (Liu et al., 2017). By leveraging IT in logistics, Walmart sustains its operational excellence, ensuring that products reach stores rapidly and cost-effectively.
Walmart's e-commerce platform further demonstrates its strategic use of technology to enhance operational efficiency. The company's online ordering system integrates seamlessly with its supply chain and inventory management systems, allowing for rapid fulfillment and delivery. The deployment of innovative delivery solutions, such as curbside pickup and partnerships with delivery services, leverages digital platforms to improve customer satisfaction while maintaining cost efficiencies (Zhang & Li, 2019).
In conclusion, Walmart exemplifies a company driven by the strategic focus on operational excellence. Its extensive use of IT—including supply chain integration, data analytics, logistics management, and e-commerce—supports its commitment to providing low-cost products to consumers. As technology continues to evolve, Walmart's ability to innovate and adapt its IT infrastructure will be critical to maintaining its competitive advantage in a highly competitive retail landscape.
References
- Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply chain logistics management (4th ed.). McGraw-Hill Education.
- Grewal, D., & Levy, M. (2014). Retailing Management (9th ed.). McGraw-Hill Education.
- Liu, Y., Zhang, H., & Wang, J. (2017). Logistics optimization in retail supply chain: A case study of Walmart. International Journal of Logistics Management, 28(2), 467-489.
- Shankar, V., et al. (2020). Digital transformation in retail: The Walmart case. Journal of Business Strategies, 37(3), 89-105.
- Zhang, T., & Li, X. (2019). E-commerce and logistics innovation: Insights from Walmart's digital strategies. Journal of Retailing and Consumer Services, 50, 74-81.