Jodie’s blog post is about the launch of Walmart’s Pickup grocery service, which has triggered my interest because of its innovative aspect. We can see that the external environment, more precisely the technological factor, is in favour of Walmart and this service can become their point of difference.

The Pickup grocery service seems very similar to that of online retailers such as Ebay. If it becomes popular, Walmart may even consider reducing its store size and invest in warehouses instead. Customers will have a better awareness of the products available and will not come across bad surprises such as travelling to Walmart and realise that the products needed are out of stock.

As Jodie mentioned, for a segment of customers such as elderly, infirm and busy parents, this service can be extremely convenient. Customers’ wont have to move around to search different products, which is time-saving. Furthermore, they will not have to waste time waiting in the queue. Payment will be made more quickly, as Walmart will calculate the total cost prior the customers’ arrival, which will be a gain creator to customers.

However, with the increasing popularity of the service, i am persuaded that the queues will be accumulated in the drive-through and clog traffic. Keeping the customers waiting in a drive-through line instead of in a check stand line will not be a pain reliever, hence Walmart’s value proposition may not be as affective.

In addition, even though their strategy aims at increasing customer spending, i believe that their sales may actually fall. Grocery stores use various strategies (the way they display their products,provide giant shopping carts…) to encourage customers to purchase things that they do not necessarily need. Walmart is aiming at the Differentiation of Porter’s Generic strategy, but will it really be effective?

Image source: http://yellowbrand.files.wordpress.com/2009/12/wal-mart1.jpg