E-commerce and Globalization Slp Introduction Wal-Mart Inc. is an American public company that has a chain of stores running underit in the form of large and discounted forms. It was incorporated in the year 1969 after being founded by Sam Walton in 1962. Currently, the company is being considered as the largest global private employer and the fourth largest commercial or utility employer. Application of E-commerce The application of e-commerce by the company can be justified by the fact that almost all the aspects of product review and customer review of the available stores goods can be hosted online; thus, according both the company and the consumers a platform for interaction over the price, reviews and the availability of the goods that are on offer for sale.
Subsequently, the Company has had its product development metrics and tactics all based on the feedback that it receives from the e-commerce platforms that it engages in. Revealed from Wal-Mart’s website, nearly 90% of its customers are online users thus, according the Company with an opportunity to easily engage in e-commerce through the gauging of its products’ reviews online (Barfield, 2003).
Particularly, the shoppers at its website – Wal-Mart. com – can now easily review and rate the products offered online for sale with ease. Additionally, Wal-Mart’s introduction and incorporation of the smart shopping feature in its website that allows customers to log in through their unique passwords and usernames is a clear indication of the application of e-commerce by the organization. E-commerce is enhanced in the Company through its website since now shoppers only need to select products online based on the tag numbers and have the same good delivered to them.
This e-commerce platform was successfully tested by Wal-Mart and now it is reaping from the launch of an online customer experience. Another significant feature of e-commerce as applied by Wal-Mart is in relation to online review platform that customers can now log into and make comments about the quality of product service received. This has provided the Company’s executives with an opportunity to directly connect with the consumers of its product online and engage with them through feedbacks on the products and services offered by the company, which are then immediately redressed (Barfield, 2003).
As a result, it has expanded on its market base as it can easily reach out to its customers effectively. Finally, through e-commerce, Wal-Mart has been able to effectively plan on its future operations and consistently launched new product models based on the feedback received from the online platform. This has also enabled it to make decisions based on individual cases thus, limiting chances of making mistakes and make corrective action for them. Furthermore, its stock quotes allow for online buying and selling of the stocks thus, enabling it to keep track of its stock portfolio changes. E-commerce and competitive advantage Wal-Mart Inc.
can effectively use e-commerce to set up a competitive advantage for its products over those of its competitors in the market. E-commerce can be considered as a stealing of the virtual space and considering the manner in which technology has captured the imagination of everyone, it can effectually act as a platform for acquiring more market economies. Most people are glued to their computers; hence, find little time to go for physical shopping.
However, they would gladly consent to online transaction. As such, online shopping will do away with all the hustle connected to physical visits to shops and in return enhance growth for the company (Barfield, 2003). For instance, since the launch of its online shopping experience feature, Wal-Mart has had a double increase in its sales turnover, an indication of the competitive benefits that can be derived from the use of e-commerce. Subsequently, e-commerce can enhance competitive advantage by enabling the company deliver on high customer values and stay ahead of its competitors in all fronts. Relation to Gerstner’s comments Through the e-commerce platform that it introduced, Wal-Mart has been able to actively interact with its customers personally based on the schedules from the online reviews it receives.
E-commerce has also led to the enhancement of the supply chain management in the organization as part of the competitive advantage accruing to it. Subsequently, the rate of selling items online is faster than the normal method of physical sale in the stores. Subsequently, the adoption of the 24/7 customer support service feature has greatly enabled the organization to effectively and instantly connect with its customers online.
E-commerce has also provided for the detection of defects in the products since the entire product information is available online in its website. The online catalogue, along with the video clippings provides for all the information regarding a product including the latest offers that may in contemporary shops go unnoticed. Therefore, e-commerce boosted by the online virtual space has numerous advantages to the company in terms of personal decision making and effectiveness of product delivery by the company.
Thus, it is an indispensable part of the organization in the attainment of success and economic growth (Barfield, 2003). References Barfield, C. E. (2003). Internet, economic growth and globalization: Perspectives on the New Economy in Europe, Japan and the USA. Berlin [u. a.: Springer. http: //www. bizreport. com/2007/07/walmartcom_launches_product_review_feature. html