Image from: http://walmartstores.com/pressroom/news/6811.aspx
Since 2003, Wal-Mart has invested $3 billion into advanced inventory tracking technology.1 Using radio frequency signals and microchips, Wal-Mart can now track its inventory in real-time.
Then, in September 2011, Wal-Mart realized, from the data they had collected throughout the years that consumers tend to spend more money “at the beginning of the month, when many people are paid, and… [less] at the end of the month when they run out of money.”2 This trend shows that many people are living pay-cheque to pay-cheque. To stay competitive, Wal-Mart then decided to offer more inexpensive products.
Wal-Mart is using business information systems (MIS)3 to track consumer trends and adjust their offerings to better cater to their customers. Furthermore, they are also taking advantage of their MIS to experiment on offering high-end merchandise aimed for higher-income families at one of their test stores, named “Urban 90.”
Wal-Mart has proven that the information provided by MIS is invaluable. It has a competitive advantage over other retailers in that Wal-Mart can use real-time data to quickly respond to changes in consumer behaviour. Other retailers should do the same, as MIS can be used to both improve a company’s offerings and expand its customer base.
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1. http://news.cnet.com/Wal-Mart-puts-big-bucks-into-tracking-tech/2100-1008_3-5104493.html
2. http://www.theglobeandmail.com/report-on-business/economy/wal-mart-cashes-in-on-income-gap/article2166522/
3. http://mis.sauder.ubc.ca/