Wal-Mart

- What do you think about the privacy issues associated with all of that data and the amount of personally identifiable data they are able to capture. Does it bother you? Do you trust them with it?

I am personally comfortable with the amount of information that Wal-Mart’s IT system collects, mostly because I have never cashed a check or participated in any service that Wal-Mart provides where my social security number or driver’s license number would be collected. Despite the fact that I have yet to have any sort of experience that pertains to sensitive information, I am still not comfortable with the idea that Wal-Mart actively collects and preserves the information, especially without the consumers’ knowledge. Unidentifiable information (such as what other items I purchase along with milk and bread) is fine. While some consumers may be uncomfortable with Wal-Mart knowing their most embarrassing purchase habits, so long as Wal-Mart doesn’t place a name to the items they are only ensuring that they provide the products you desire. The possibility of personal information being compromised is not worth the risk, especially if the owner of the information does not know or allow Wal-Mart to retain it. While the non-identifiable information is considered fair game, it is hard to justify the ability to find out a consumers mortgage amounts, court dates, driving record, and creditworthiness in order to provide low prices everyday. The article doesn’t specify if this information is frequently accessed, or whether if Wal-Mart just has the ability to. Either way, I feel that Wal-Mart is overstepping its boundaries and violating consumers’ privacy by accessing this information.

- What aren't they doing with technology that they could; that is, are they using all of the technology that is available to them to capture insights and create great experiences for their customers and, if not, what could they do?

I believe Wal-Mart is using IT in the most efficient way for its own interests. As the article states, some individuals are uncomfortable with the amount of personal information that resides in Wal-Mart’s database. However, not many individuals know the type or amount of information that they collect on their purchasing habits because of the inconspicuous use of the information. If during a visit to Wal-Mart, an ad or Wal-Mart employee offered suggestions on past and previous purchases, it would most likely make people feel on edge having a constant feeling of being watched/followed. As the article states, Wal-Mart does not care what each person buys individually, but rather what sells as a part of a larger basket. Wal-Mart finds more interest in what else you buy with Strawberry Pop-Tarts rather than who you actually are. Based on this information, they can extrapolate this information with all of the other buyers, and create savings and profits based off of the other products purchased in relation to Strawberry Pop-Tarts.

- What impact do you think they are having on their suppliers - making them better and more efficient or driving them too hard and reducing their profitability. Again, try to keep this in the context of technology.

I feel that the relationship between Wal-Mart and its suppliers is somewhat imbalanced and unfair. The bargaining power of Wal-Mart clearly outweighs the bargaining power of its suppliers. Since Wal-Mart is such a large buyer, there is very little room for negotiation. It seems doing business with Wal-Mart is more of a necessary evil in the eyes of its suppliers. A suppliers’ choice is to (a) do business with Wal-Mart and reap the benefits of Wal-Mart’s expansive presence or (b) do business with lesser-known retailers at a higher markup, but without certainty to future business and profits. Being in bed with Wal-Mart guarantees future business and inventory turnover -- the same benefits that cannot be guaranteed by smaller retailers. I believe at the moment Wal-Mart and its suppliers are at an equilibrium that both parties can endure. If at any point Wal-Mart begins asking too much of its suppliers (which result in losses rather than profits for the supplier) then inevitably the suppliers will go out of business (and Wal-Mart will most likely replace them with a similar supplier). The chance that the opposite occurs (where Wal-Mart goes out of business) is far less than the former. For this reason I see the relationship as more negative than positive. Wal-Mart already advertises low prices for its consumers. These low prices are absorbed by the suppliers rather than Wal-Mart. In addition, Wal-Mart presses its suppliers to RFID tag their inventory, making it easier for Wal-Mart to track what is in its stores. While the technology is cheap, it still takes away from the thin profit margins the suppliers are already experiencing.