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How Big Data and Data Science Are Reshaping Walmart’s Retail Philosophy?

case study 6 1 data communication at walmart

Have you ever wondered how a modest discount retailer transformed into a global behemoth, operating in 10,500 stores and clubs scattered across 24 countries?

Or how a company with humble beginnings can amass a jaw-dropping $559 billion in revenue for the fiscal year ending in January 2021?

That’s a colossal $35 billion growth , primarily driven by the explosive expansion of its eCommerce sector.

But behind the scenes of Walmart’s meteoric rise is a fascinating tale of innovation and data-driven mastery.

Join us as we embark on a journey through the evolution of Walmart , uncovering the secrets of its unparalleled success.

So, are you ready to dive into the extraordinary world of Walmart Labs and explore how data science fuels the retail giant’s ‘ Everyday Low Cost ‘ commitment?

Walmart Labs: Powering the Data-Driven Retail Revolution

Walmart is not just a retail company; it’s a data-driven powerhouse. At the heart of this transformation is Walmart Labs, a veritable hub of innovation and technology , which has set out to harness the incredible potential of big data.

Walmart’s journey into the digital age has been nothing short of phenomenal, and it is leveraging big data and advances in data science to create solutions that enhance, optimize, and personalize the shopping experience.

The Mammoth Data Infrastructure

Walmart boasts the world’s largest private cloud, capable of managing a staggering 2.5 petabytes of data every hour . To handle this colossal volume of data, Walmart has created the ‘ Data Café ,’ a state-of-the-art analytics hub situated within its Bentonville, Arkansas headquarters .

Here, data scientists and analysts work tirelessly to extract valuable insights from the data deluge , driving Walmart’s operational and strategic decisions.

Applications of Data Science at Walmart

At the forefront of Walmart’s data-driven revolution is a team of dedicated data scientists focused on creating solutions that power the efficiency and effectiveness of complex supply chain management processes.

Here are some of the remarkable applications of data science at Walmart:

i) Personalized Customer Shopping Experience

Walmart believes in making every shopping trip unique. To achieve this, the retailer employs data science to analyze customer preferences and shopping patterns . This analysis informs the stocking and displaying of merchandise in Walmart’s vast network of stores.

It also helps Walmart make informed decisions regarding new item introductions, product discontinuations, and the performance of various brands. The result is a shopping experience tailored to individual preferences.

ii) Order Sourcing and On-Time Delivery Promise

Walmart’s eCommerce platform, Walmart.com , serves millions of customers daily. One of the most crucial aspects of online shopping is the estimated delivery date. Walmart’s data scientists have developed a sophisticated algorithm that calculates this date in real time, taking into account the distance between the customer and the nearest fulfillment center, current inventory levels, and available shipping methods .

The supply chain management system determines the optimal fulfillment center for each order, considering distance and inventory levels. It also decides on the most cost-effective shipping method, all while ensuring the promised delivery date is met.

iii) Packing Optimization: The Bin Packing Challenge

In the world of retail and eCommerce, efficient packing and shipping are paramount. Walmart has tackled the age-old problem of optimizing the packing process. When items from one or multiple orders are ready for packing, Walmart employs a cutting-edge recommender system .

This system selects the most suitable box size to contain all the ordered items with minimal in-box space wastage, all within a predefined time frame. The problem, known as the Bin Packing Problem , is a classic NP-Hard problem that challenges the skills of data scientists.

Unveiling the Power of Data Science with Walmart’s Case Studies

To truly understand the practical applications of data science in the real world, Walmart offers a fascinating case study on sales prediction. The Walmart Sales Forecasting Project delves into the use of historical sales data from 45 Walmart stores, each housing numerous departments.

The challenge is to build a predictive model that can accurately project sales for each department in each store . This case study provides insights into the complexity and precision required to meet the demands of the retail industry.

Another intriguing project awaits data science enthusiasts—the Inventory Demand Forecasting Data Science Project . The goal here is to develop a machine learning model that forecasts inventory demand with precision, drawing from historical sales data.

Walmart’s data-driven journey is a testament to the transformative power of big data and data science.

It’s a story of retail reinvention, personalization, and optimization, all powered by the remarkable ability to turn data into actionable insights.

As Walmart continues to explore the endless possibilities of data-driven retail, the future promises even more innovation and excitement in the world of shopping.

Are you ready to dive into the world of data-driven retail with Walmart?

case study 6 1 data communication at walmart

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Walmart has employed the use various strategies that are important in improving communication systems. It is because it needed to be the lowest-cost retail merchandiser.  In this regard, the organization has improved its communication systems through providing a customized website for the suppliers, which has been important for retrieval of all sales, inventory and carrying forecasts by ensuring that there is faster connectivity. To ensure that there is high confidentiality of the data in the organization, the organization has employed the use of security systems that is use in barring suppliers from accessing the data of other suppliers. Furthermore, the organization has also enhanced data communication system that has enabled the suppliers to be able to access Web based access to the organizations’ retail Link platforms. This has been important in enabling them to access the information in the database of the organization easily.

Some of the approaches that are employed by the organization in ensuring effective communication with the suppliers include automated-distribution-systems, the use of effective computer-routing systems, and electronic data interchange. In this regard, the organization is utilizing these kinds of systems to ensure that it remains as one of the top retailers in the world. Walmart is employing the use of new technologies in tracking and managing flow of products in its distribution centers all over the world. As a result, there have been uses of wireless systems that are crucial in complementing the operations of Walmart’s warehousing systems. Equally, the Vehicle Management System (VMS) has been essential in tracking and managing the way through which goods and services are flowing in the organization’s distributions areas. Equally, the wireless systems used by Walmart are important in controlling and also monitoring fork lifts, as well as usage of organizational vehicles. These two essential tools are used in moving merchandize in its warehouses/distribution areas.

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Walmart has employed the use of different technologies in its operations, and thus, it is one of the organizations involved in innovation when tracking inventory, restocking shelves, reducing expenses, and also reducing the amount of money spent by their clients. As a result, the company has become synonymous with a simple supply management chain. By employing the use of several distribution methods, technologies, and truck-fleet management, this organization is considered as one of the best in supply chain management and it one of the organizations with high number of employees in the world. Because of this, the company has employed the use of Radio Frequency Identification that is known to employ the use of numerical codes. These are important in tracking pallets of goods that are being supplied along the chain. In the recent times, Walmart organization started using smart tags, which can be read scanner. This has allowed the employees to know the gods that needs replacement, and thus, the stock will always be packed and also, the employees can watch the inventory closely.

In the year 2012, the organization shifted it corporate communication strategies through sharing its rich history with the stakeholders. To ensure that this was successful, the company employed the use of the modern CMS system that is important in streamlining content publishing process. This was important in ensuring that this endeavor was efficient and adaptable to the changing corporate communications needs. In this regard, the company discovered that Brightspot was the right platform that was to be used in empowering its corporate communication strategy. In this regard, Walmart’s Brightspot has offered a new design and content taxonomy after its launch. The organization is considering the platform to be efficient because it can bring quick changes, and also provide human stories in the organizations corporate news. Thus, the organization has made changes in the manner it creates and produces its content.

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How Walmart transformed its corporate communications strategy with the power of brand storytelling

A close-up of Walmart's star logo is seen on the back of an employee's shirt inside a store. This blog post explores how Brightspot helped Walmart shift its corporate communications strategy.

Learn how Brightspot CMS and the power of brand storytelling enabled Walmart to transform their corporate communications strategy.

In a world teeming with multimillion-dollar brands, the power of brand storytelling is paramount to the future of your business. While bold marketing campaigns and smart advertising may draw consumers to your digital door, it’s how you connect with them that makes your brand memorable and transforms customers into brand ambassadors . For that reason, it is essential that your company’s corporate communications strategy strives to not only share content, but to engage stakeholders with engaging brand stories that express the ethos of your company.

Screenshot of Walmart's brand storytelling page

Using corporate communication as a branding strategy

Walmart, the world’s largest retailer, is a perfect example of an organization who has harnessed the power of brand storytelling for engaging their consumers. Today, Walmart manages eight global corporate websites from one powerful content marketing system ( CMS ) and easily weaves storytelling into each section of its websites, displaying the heart and soul behind this massive brand.

Walmart’s shift to brand storytelling

In 1950, Sam Walton opened Walton’s 5 & 10 in Bentonville, Arkansas. Today, the company is an economic force, operating more than 11,700 stores in 28 countries and employing 2.3 million associates worldwide.

In 2012, after recognizing the potential power of brand storytelling, Walmart decided to shift its corporate communications strategy to share this rich history, as well as convey its passion for its communities, associates, the environment, and innovation within its industry.

“The world has changed, and we recognized that we, as a team, needed to change the way we present and tell the rich stories we’ve been waiting to tell,” said Chad Mitchell, Senior Director of Digital Communications at Walmart .

Digital strategies for powerful corporate communications

To make this shift in their corporate communications strategy successful, the company sought a modern CMS that could streamline its entire content publishing process . The goal was to make content creation and distribution workflows more agile, efficient, and adaptable, while empowering the corporate communications team to operate as editors and publishers. Walmart needed a system with customizable user roles, clear content workflows , multi-site management, and the ability to publish to multiple channels from one system.

After discovering Brightspot was the platform that powered Coca-Cola’s digital magazine Coca-Cola Journey, Walmart determined that the digital experience and brand storytelling platform met all of its requirements and chose Brightspot as its new CMS.

Brightspot CMS case study: Walmart

How Brightspot powers Walmart’s brand storytelling strategy

In just five months, Walmart migrated its corporate website to Brightspot, complete with a fresh design and new content taxonomy. Walmart also launched its corporate blog , Walmart Today , on Brightspot. Now, Walmart’s corporate communications team owns each website’s content calendar. The team can make changes quickly and easily as they work to attach human stories and faces to Walmart’s corporate news.

With the help of Brightspot, Walmart has changed how it creates and publishes content, evolving from simple press releases and basic blog posts into full-blown brand storytelling that uses corporate communication as a branding strategy.

For more information on this powerful brand storytelling example, read the full Walmart + Brightspot case study here .

Brightspot CMS case study: Walmart

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Case 6 Walmart, Inc. in 2018: The World's Biggest Retailer Faces New Challenges *

In 2018, Walmart was not only the world's biggest retailer, it was also the world's biggest company in terms of revenue—a position it had first attained in 2000 and had held for most of the intervening years.

Since going public in 1972, Walmart's record of growth and profitability was remarkable. Between 1972 and 2009, its average annual sales growth was 22% and its return on equity had not fallen below 20%.

Yet, sustaining Walmart's phenomenal record of growth and profitability was proving to be an ever more daunting challenge. As Walmart continued to expand its range of goods and services—into groceries, fashion clothing, music downloads, online prescription drugs, financial services, and health clinics—it was forced to compete on a broader front. While Walmart could seldom be beaten on price, it faced competitors that were more stylish (T.J.Maxx), more quality‐focused (Whole Foods), more service‐oriented (Lowe's, Best Buy), and more focused in terms of product range. In its traditional area of discount retailing, Target was an increasingly formidable competitor, while in warehouse clubs, its Sam's Clubs ran a poor second to Costco.

However, all these competitive threats were trivial compared to that posed by online retailing—and, specifically that posed by the world's emerging retail colossus: Amazon. During 2017, the turf battle between the two became increasingly acute: while Walmart expanded ...

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case study 6 1 data communication at walmart

Using Data in a Strategic Plan: Walmart Inc. Case Study

Strategic analysis of organisational data and information that supports decision-making.

Walmart has been long known in the retail industry as one of its undeniable leaders. Even minor issues in ethics and complications related to the criticisms that a range of people provide for its activities, Walmart continues to be successful in its chosen segment of the global market. However, by integrating better tools for organisational control and processing company-related information, Walmart’s leaders will take the company’s development to the next level and attract new audiences.

Business Level Strategy and Corporate Strategy

The strategy that Walmart currently uses as a business-level one consists of three items, which are the cost-efficient approach to financial management, product differentiation, and marketing geared toward specific groups of customers (Spicer & Hyatt, 2017). As Groeger, Bruce, and Rolfe (2019) explain, the organisation focuses explicitly on the identified issues since its business model is rooted in “price effects and volume effects” (p. 103).

Environmental Analysis

The SWOT analysis shows that Walmart has control issues and problems in its PR and communication approaches. Overall, organisational decision-making occurs based on the preconditioned notions of cost-efficiency and the need to cater to the requirements of a specific segment of the population. As a result, the company fails to take into consideration the data that concerns its staff members and the difficulties that they face when working in the set conditions (Li & Liu, 2016).

Moreover, in its pursuit of low prices and increase in the amount of retailed products, Walmart has been ignoring the details that have led to significant controversies, such as selling questionable products, which include T-shirts with a “Gun Owner/Victim” sign on them (Roeder, 2019). The lack of a coherent standard for communication can be blamed for the observed problems.

Table 2. Walmart: PESTEL.

According to the results of the PESTEL analysis, Walmart could use a much better framework for building a competitive advantage. The issues that the company is currently experiencing are inextricably connected to its mismanagement of information and difficulties in its organisational decision-making. For instance, the fact that the company’s main competitive advantage has been wearing its welcome in the target market due to changes in consumers’ lifestyle choices should have been integrated into Walmart’s strategic decision-making, yet the company continues to exploit the same gimmick of cheap products

Porter’s 5 Forces

The analysis of Porter’s five forces that affect Walmart’s development also prove that the organisation could use a better framework for establishing feedback processing techniques within its system as the means of managing information related to its staff members and the levels of engagement among them. Currently, the company is largely affected by the possibility of increase in competition rates. As soon as its rivals, who have built a sustainable system of operations in the digital environment, gain enough momentum in the target setting, Walmart may lose a significant portion of its influence in the global economy (Mussa & Zhi Zhang, 2016).

In turn, problematic aspects of its employee management strategies caused by the inconsistencies in the communication system will make the organisation’s service quality drop (Liu, Luo, Huang, & Yang, 2017). Therefore, the bargaining power of buyers will rise as new competitors emerge, which will put Walmart under the threat of being outed from its present position of the retail leader (Mussa & Zhi Zhang, 2016). Moreover, the change in the company’s perception among its target customers will affect its chances at establishing presence in other countries quite negatively.

Resources and Competence Analysis

The availability of resources makes the foundation of a company’s capability to respond to alterations in its organisational environment and manage information effectively. Therefore, the assessment of Walmart’s resources is central to the evaluation of the organisation’s decision-making, as well as its capacity to communicate critical information to its employees and managers. The current external environment in which the organisation operates is characterised by a multitude of technological innovations and the strong propensity toward moving to the digital market (Schleper, Blome, & Wuttke, 2017).

Therefore, Walmart could make quite efficient use of the approaches that would guarantee it a seamless transition to the use of digital tools as the means of keeping communication consistent and performing decision-making based solely on the factors that facilitate the company’s functioning in the target market.

In this context, Walmart will also need to update its staff members’ competencies in digital information management. By transitioning to a new framework of data management, the company will have to educate its members to utilise digital data storage and transfer tools in the way that will benefit the company. Thus, overall, the results of the competitive analysis are indicative of the need to introduce an immediate change into the firm’s approach toward organisational decision-making and communicating information within the firm.

While Walmart has succeeded in cementing its image as that one of a company with the lowest product prices and acceptable quality, it is time for Walmart to move past the well-trodden path and focus on a more effective data management framework for more effective decision-making.

Strategy Plan

Company’s mission.

In order to gain a greater influence in the global economy and retain its reputation of a retail industry leader in the American one, Walmart will need to transfer to the digital framework for data management and improve its decision-making approach to incorporate ethical considerations. Thus, the organisation will avoid embarrassments such as the T-shirt scandal mentioned above (Roeder, 2019).

For this reason, the mission of the organisation will need to be tweaked to include appropriate ethical principles and ideas. At present, Walmart represents its mission as providing “a wide assortment of good-quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience” (“Walmart.com’s history and mission,” 2019). Being customer-cantered, the mission in question seems to lack the emphasis on other stakeholders’ needs.

The organisation also has a side mission that it also strives to accomplish. The specified addition is much more focused on the introduction of technological and digital innovations into the set of services offered to the company’s customers: “In short, Walmart.com is passionate about combining the best of two great worlds – technology and world-class retailing” (“Walmart.com’s history and mission,” 2019). Therefore, the current developments in the organisation’s setting point to positive change, yet innovative technologies also have to be introduced into the realm of organisational management and data sharing.

Strategic Directions

The strategic course that the company should take in the nearest future is the focus on the continuous, uninterrupted dialogue between its stakeholders. These include not only customer relationships but also the communication between Walmart and its employees, as well as suppliers, investors, and shareholders. Although the integration of the FRID data management framework can be regarded as an important step in advancing Walmart’s progress, the drastic lack of focus on the aspects that make the company open to external threats is the source of concern.

Strategic Controls Evaluation

The issue of control is, perhaps, the point of the greatest importance for Walmart at present. As the recent scandal with T-shirts has shown, it is imperative for Walmart to be able to track down the instances of inappropriate products being offered by suppliers to be sold at Walmart’s locations (Roeder, 2019). The current strategic controls used for data management and product filtering seem to be quite ineffective since they do not allow locating the cases of poor decision-making or miscommunication within the environment of the organisation. The same problem concerns the management of employees’ needs and the misrepresentation thereof in the corporate environment.

As research has shown, Walmart addresses only the basic needs of its staff members, often being quite dismissive toward their culture-specific demands (Kaelberer, 2017). While the described perspective allows the company to maintain its production volume high and its management processes consistent, it also leads to dissatisfaction building in staff members, causing them to lose their engagement in the company’s mission, and showing lower performance rates (Koca-Helvaci, 2015).

Therefore, Walmart has to redesign its approach to controlling its strategic communication and data management. The new framework for strategic controlling will need to identify changes in employees’ engagement through involving them in the dialogue with the company. A new system of a reciprocal conversation with the company represented by an improved communication channel will have to be established at Walmart.

In addition, the issue of offering customers inappropriate products and getting involved in ethically dubious cases has to be addressed at Walmart. For this purpose, the tracking system that could assist in indicating the cases of inappropriate products has to be placed into the company’s framework. The current strategic controls rely fully on an automated system, which allows saving time, yet reduces the efficiency of control (Loomis, 2018).

Therefore, a dual system that involves both machine and human control will be needed. Specifically, jobs that require locating inappropriate products and eliminating them from the product lien will have to be introduced into the company’s operation management. For this purpose, a communication system that will allow informing every participant about the instance of a problematic issue emerging within the company’s environment has to be developed.

Objectives and KPIs

Given the complicated issue of data management within Walmart, several key objectives have to be established at present. Moreover, a set of key performance indicators (KPIs) will need to be set for the company to follow. Thus, the organisation will achieve more effective decision-making and manage its performance better. In addition to the existing KPIs, several ones addressing the communication issue will have to be added.

Table 3. Walmart: Suggested KPIs.

Place of Strategic Control: Evaluation

Current approach: weaknesses and strengths.

Although Walmart already has an established framework for strategic control, it could use a number of improvements. The company currently uses the approach known as strategic surveillance to control its internal processes and manage data properly, which includes placing tags on products, labelling them, and performing other tasks associated with sorting and management of goods (Formby, Malhotra, & Ahire, 2018). Although the described system seems to have been working relatively well, recent issues such as the introduction of inappropriate products into retail has affected the company’s reputation (Mullakhmetov, Sadriev, Gabidinova, & Akhmetshin, 2016).

Therefore, the inclusion of human control along with mechanical one will need to be considered as a necessity (Hamilton & Benjamin, 2019). The main weakness of the current strategic control is the lack of opportunity to evaluate products based on their cultural context and meaning. However, the utilised tool also has the benefit of making the product sorting and labelling very quickly. Given the company’s priorities concerning the provision of fast and cheap services, the control tool seems appropriate, yet the introduction of supervision over the products introduced into retail will also be necessary to prevent the instances mentioned above.

Strategy Implementation Plan

The process of implementing the changes to the current communication and decision-making frameworks will need to follow the theoretical framework of Kotter’s 8-Step Model. Using the specified tool will help HR managers to assist employees in adjusting to the new approach toward quality management and communication. Likewise, managers will also have to develop the skills and competencies required to provide immediate responses to the feedback supplied by employees and introduce immediate measures for correcting the situation.

For the plan to be implemented successfully and be accepted by all of the company’s members, the person performing the functions of the leader will have to combine two strategies in managing the change within the organisational context. Specifically, the Organisational Change Approach will need to be placed into the organisational context together with the Collaborative Approach and the Cultural Approach. While the Organisational Change framework will help to establish the set long-term objectives and focus on the introduction of crucial corporate values for employees to integrate into their decision-making and communication, the Collaborative Approach will lead to better information management, with the focus on data sharing and cooperation causing a gradual improvement (Vaara, Sonenshein, & Boje, 2016).

Finally, the Cultural Approach will help a manager to understand the demands and needs of employees better in order to improve the present HRM framework. Although, regarding the latter issue, the general direction is already visible since the demands toward staff’s performance have grown out of proportions, a more detailed analysis of employees’ culture-specific needs is still required. Since the volume of work and the number of responsibilities are unlikely to drop in eth nearest future, Walmart will have to make concessions for its staff members in order to increase employee motivation and engagement, as well as attract new staff members and relieve the pressure of responsibilities form the current staff partially.

Using the 5Cs of Strategy Execution will also be necessary to make the transition from the current framework of communicating with Walmart’s key stakeholders to the new and improved one much easier. Likewise, the transfer to a new approach toward quality control that will involve the assessment of products’ content along with their functionality will become smoother with the incorporation of the 5CS framework. In Walmart’s context, the model will be implemented by introducing simple tasks involving the use of improved communication tools as the means of enhancing the causality of their use (Kumar & Sharma, 2017).

The discussions that will precede the implementation of strategies and the following analysis of their effects, in turn, will provide a gateway to introducing criticality into the decision-making processes. Moreover, discussions of the newly developed and adopted values with staff members will show whether these values are compatible with employees’ philosophies and perspectives. The promotion of corporate standards and the introduction of monitoring and reporting systems will help to build continuity, whereas the reconsideration of corporate guidelines and their simplification will lead to clarity.

It is believed that the implementation plan outlined above will lead to an increase in employee engagement levels due to the increased opportunities for receiving feedback from staff members and improving the workplace environment in which they perform their routine functions.

Communication Tools: Internal and External Stakeholders

Since the enhancement of communication is currently seen as the essential priority for Walmart, appropriate tools will have to be introduced to communicate corporate values, essential guidelines, and other important messages. A fast communication channel will be of use when noticing problems in the social or cultural context of the products that Walmart will offer to its buyers. Therefore, strategies based on surveys and questionnaires should be included into the communication process. The internal communication channel that will allow receiving information about workplace issues and provide quick feedback will be necessary to appease staff members and keep the levels of internal stakeholders’ motivation high.

In turn, the application of a feedback system that will help to build the dialogue with consumers, suppliers, business partners, and shareholders will be crucial as well. The specified external system of communication can be supported by advertisements and websites where customers can leave their feedback. Suppliers, investors, and other stakeholders will require a different treatment based on prompt responses via e-mail or other communication tools. Once the strategy for the reciprocal dialogue is established, Walmart will be able to maintain the quality of its performance at a decent level, keeping its position in the retail market.

Monitoring and Evaluation Systems

As shown in the projected KPIs described above, Walmart has to integrate control tools into its communication and decision-making systems. Thus, the firm will ensure that its values and ethical principles are being followed by employees and managers when making choices related to the production processes, organisational issues, customer relations, and other relevant concerns. An approach based on daily reports and monthly audits will help to identify new problems in the company’s functioning and integrate models for correcting the errors that have led to the observed situation.

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Mullakhmetov, K. S., Sadriev, R. D., Gabidinova, G. S., & Akhmetshin, E. M. (2016). Control in marketing-based management. Academy of Marketing Studies Journal, 20 (2), 13-19.

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Roeder, J. (2019). Walmart slammed for vendor’s pro-gun T-shirt, adding to pressure . Bloomberg . Web.

Schleper, M. C., Blome, C., & Wuttke, D. A. (2017). The dark side of buyer power: Supplier exploitation and the role of ethical climates. Journal of Business Ethics, 140( 1), 97-114. Web.

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Vaara, E., Sonenshein, S., & Boje, D. (2016). Narratives as sources of stability and change in organizations: approaches and directions for future research. Academy of Management Annals, 10 (1), 495-560.

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case study 6 1 data communication at walmart

For years, Walmart’s unrivaled customer research capabilities helped it dominate retailing. Then along came the internet, and Walmart suddenly found itself playing catchup to e-commerce pioneers like Amazon. In 2014 the board appointed Doug McMillon as CEO and gave him an imperative: Bring Walmart into the future—without sacrificing its longtime strengths.

McMillon, who began his career unloading trucks at a neighborhood Walmart, respects tradition but is impatient for change. In this interview with HBR editor in chief Adi Ignatius, he describes the ups and downs of transforming America’s largest company. Going digital is a top priority—which is why Walmart recently paid $3 billion to acquire e-tailer Jet.com. But the company also wants to strengthen the in-store experience. “The reality,” notes McMillon, “is that customers want everything”—low prices, convenience, and seamless interactions online and in person. In this new world, all employees, including those on the sales floor, will need to be tech savvy. And the management team can no longer make strategic decisions on an annual or even quarterly basis; “strategy is happening on a much faster cycle time,” says the CEO.

A conversation with Walmart CEO Doug McMillon

For years, Walmart seemed to understand exactly what its customers wanted. It developed complicated consumer analytics and used that data, along with relentless pressure on suppliers, to become a retail powerhouse that sold practically everything at the lowest possible prices.

  • Adi Ignatius is the editor in chief of Harvard Business Review.

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