Innovation Strategy for Walmart
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Innovation Strategy for Walmart
Introduction
Walmart is one of the leading retail stores in America. Currently, it employs 2.2 million employees around the world (Company Facts, 2020). In the fiscal year 2020, the company registered a total of $ 254 billion, which was a slight increase from the previous years (Company Facts, 2020). Walmart was founded in 1962 by Sam Walton, and for more than fifty years, the business has prevailed in an unpredictable and highly competitive retail market (Company Facts, 2020). Despite this, a McKinsey report indicates that the retail industry in America is undergoing an ‘apocalypse’ (Huang et al., 2019) Companies such as Amazon.com Inc. and other digital disruptors are placing traditional retail stores such as Walmart under threat (Huang et al., 2019). The recommendation is for conventional retail stores to reinvent themselves amid the growing disruption in the retail industry. Reinvention, in this case, could be the incorporation of technology with preference to customer experience. In line with this, the report proposes the use of voice-activated shopping using mobile phones, which can be a feature and product of Walmart. In line with this, the following report provides an innovation strategy design regarding voice-activated online shopping for customers.
- Opportunity
In America, there is a growing trend of incorporating technology into the shopping experience of customers. Primarily, the architecture is to provide for a more relaxed shopping experience as do companies such as Amazon.com Inc. (Huang et al., 2019). Currently, there is the opportunity of combining shopping experience using the mobile phone. Technology is no ordinary combination, as it includes a mobile shopping assistant (Wu & Natchetoi, 2007). The mobile shopping assistant is a regular program that runs on mobile phones. The program can provide the following services: (1) product descriptions, (2) product search, (3) payment, (4) product location, and (5) promotions (Whang, 2018). Ideally, the mobile phone program can be used in the comfort of the users’ home or any other location. Another way of using the program is shopping. When the customer walks into the store, they are allowed to list the products they want, and they can be directed to where each product is on the shelves (Whang, 2018; Wu & Natchetoi, 2007).
Additionally, if the customer users the mobile applications, they can receive promotions and product descriptions that correspond to their shopping list. The program works like this: while at the store, the customer will have to list the products she or he wants through the mobile application (Whang, 2018). While at the store, the mobile program will provide a layout of the store and direct the client to where each product is on each shelf. However, this product has to align with web services.
- Resources and Capabilities of the Firm
Walmart’s profitability enables the business to venture into e-commerce. At present, the company is strategizing on how to improve its e-commerce presence, given the stiff competition, it is getting from online retailers such as Amazon.com (Huang et al., 2019). As such, the business has enough capital investment on this mobile assistant platform. It will leverage the company to optimize the Internet of Things (IoT). In 2016, Walmart acquired Jet.com for $ 3 billion and Flipkart for $ 16 billion (Afable, 2019). These two ventures acquired by Walmart have re-invented the retailing giant to the digital world. Therefore, the business has enough capital investment resources that are required to obtain a mobile assistant platform.
On top of this, the business also has confined or consolidated technological platforms, including Flipkart, which are ideal in launching the mobile application (Afable, 2019). Recently, the company partnered with Microsoft in building its online services. The strategic partnership is suitable for the long-term implementation of the mobile platform (Afable, 2019). The collaboration with Microsoft allows Walmart to have a strategic Information Technology partner that has competent skills, experts, and professionals who can help build the platform suitable for Walmart’s clients. In addition to this, the business, Microsoft, will have enough cloud-computing services for Walmart to delve into web-based combination services with the mobile assistant (Afable, 2019). The architecture of the system is necessary as it provides enough storage of information and processing speed for improved customer experience.
- The Missing Resources and Capabilities
Primarily, the missing resources for Walmart are lack of a strategic partner in the development of the mobile assistant. Having an ideal partner who already has an established mobile, voice-activated assistant will reduce costs and improve on the roll-out of the program (Company Facts, 2020). The proposed partner would be Google, as it has the Google Assistant and Apple Inc. for Siri. The two platforms are the most popular in the country and are ideal in launching the mobile program. An additional problem with the missing resources is that Walmart has to find a primary strategic partner who will develop the application without conflict of interest. Incorporation of the two tech giants may prove to be inept in achieving the opportunity realization.
Additionally, the missing capabilities are in the development of the architecture revolving around the mobile shopping assistant. The program is a highly sophisticated program that requires careful thought-process, implementation, and architectural roll-out (Wu & Natchetoi, 2007). Specifically, it requires unique management systems, input modes, and compression technologies to unite web services with the mobile program. Having both the strategic partner and the capability to develop the mobile assistant is the only reason that Walmart may not capitalize on the opportunity.
- Innovation Solution you Recommend
The implementation recommendation is for the business, Walmart, to invest in a strategic partner such as Google. The objective of the mobile assistant is to have already established voice-activated software that Google provides (Dogan, 2017). Google, on the other hand, will provide a strategic alliance in the development of the mobile assistant. Currently, Walmart has an affiliation with online platforms such as Flipkart and Jet.com. (Afable, 2019) The two systems offer Walmart the right platforms on online technology to build onto the existing Google assistant platform (Dogan, 2017). The notable contribution that both online platforms will provide is the integration architecture. The mobile shopping assistant requires an intricate combination with Walmart services using an asynchronous queue. The merit of having the asynchronous queue is to link the mobile program directly to the web services (Whang, 2018). The connection is necessary because, when a client requests an order, the relay is provided on a message queue and transfers it to the website. The website then proceeds to process the information using the processor of choice, and the resulting search results are relayed back to the shopper.
The subsequent recommendation on the implementation of the mobile program is the accreditation of smart connection management. When the mobile application has been developed, it is paramount to establish the connection of the mobile program to the available mobile phones. To do so, the mobile program should have a smart connection between personal computers and mobile phones to ease the communication between the devices (Whang, 2018). Along with this, the development of the mobile phone program includes determining the ultimate convergent input mode. The proposed input mode is voice-activated. Not all mobile phones have the same operating system and software. Therefore, the recommendation is to ensure that the input in the personal computer requests can be transcribed into the mobile phones (Wu & Natchetoi, 2007). The input modes could be voice, camera, and Bluetooth. For instance, if the voice-activated input does not work, the client can use the camera to scan the barcode and process the image. In summary, the implementation process has to encompass a lot of the variables on input modes, processors, and the mobile phone software for the mobile voice assistant program to work effectively.
- An Assessment of Risk/Reward Outcome
The firm should adopt the innovative opportunity to stay ahead of the competition and incorporate technology into its core operations. Currently, the retail industry in America is experiencing a significant shift in how businesses operate (Huang et al., 2019). Primarily, companies are incorporating technology, which proves to improve business ease of operations and, alternatively, enhances customer experience. To this end, Walmart should incorporate the voice-activated mobile shopping assistant since no other physical-traditional retail store has opted for such features in improving customer experience.
Another reason for Walmart to implement the innovation opportunity is to realize the reward associated with e-commerce. Currently, the business strategy is to improve its e-commerce presence, and the mobile application guarantees this (Whang, 2018). It not only encourages shoppers to have an easier time while at the store, but it also makes it convenient for shoppers while at the store. The proposed floor plan strategy is critical for shoppers who need less time shopping and finding the products they need (Wu & Natchetoi, 2007). Therefore, the platform will provide extensive opportunities for the business to exploit e-commerce for improved productivity and profitability.
References
Afable, M. V. (2019). Walmart Innovation Strategy Means Boosting Its Omnichannel Presence. https://www.boldbusiness.com/digital/walmart-innovation-strategy/
Company Facts. (2020). Corporate – US. https://corporate.walmart.com/newsroom/company-facts
Dogan, E. (2017). A strategic approach to innovation. Journal of Management Marketing and Logistics, 4(3), 290–300.
Huang, J., Kohli, S., & Lal, S. (2019). Succeeding in the US retail industry in an era of unprecedented disruption | McKinsey. https://www.mckinsey.com/industries/retail/our-insights/winning-in-an-era-of-unprecedented-disruption-a-perspective-on-us-retail
Whang, C. (2018). Voice Shopping: The Effect of the Consumer-Voice Assistant Parasocial Relationship on the Consumer’s Perception and Decision Making.
Wu, H., & Natchetoi, Y. (2007). Mobile shopping assistant: Integration of mobile applications and web services. Proceedings of the 16th International Conference on World Wide Web, 1259–1260.