Everyone knows Walmart, but not everyone knows the discount retailer as a “high-tech giant.” Walmart prides itself on being at the forefront of using the latest, most up to date technology. So, what contributes to Walmart’s success? Well, for starters, innovation logistics, a data-driven approach to their customer experience/operations, and investments in strategic technology. Walmart is described as a pioneer in utilizing technology to help streamline their operations. For example, Walmart started using Universal Product Codes to help standardize merchandise management in the 1980s.

Shortly after, Walmart developed a highly sophisticated supply chain system. In 1987, Walmart invested $24 million to have their own private satellite network. It’s called Ku-band satellite transmission which has allowed Walmart to communicate efficiency between their headquarters, distribution centers, stores, and suppliers. Recently, Walmart has been investing in cloud computing, AI, and automation in the hopes of improving efficiency even more.

Walmart has adopted a new strategy referred to as omnichannel to remain competitive. Essentially, this new strategy allows seamless integration between physical stores and digital platforms thereby allowing customers to shop online and have their orders delivered straight to their homes or picked up in store. 

Discussion Questions:

  1. How does the integration of advanced technology by retail giants like Walmart influence market competition, consumer behavior, and the broader economy?
  2. What are the potential economic implications of Walmart's investments in cloud computing, AI, and automation on its workforce, cost structure, and ability to drive innovation in the retail sector?