RTMG301 FORUM AND RESPONSES
1. Do technological advances brought on by innovation represent a threat or an opportunity? Why?
2. You are to research and highlight an article which discusses how a new innovation was implemented into a marketing campaign by a retailer.
Response #1: I think with the technology growing and expanding so quickly that people are prepared for new ideas to be it good or bad. There are pros and cons with any type of new advancement and always a possible threat but also an opportunity to grow. One disadvantage is that there are more hackers and personal information being taken and sold but people still give their information to people. A positive with technology is that the company could expand and grow more with advancement. It could also help with other areas of inventory and marketing. I think the worse scenario is that the jobs will be taken over by mechanical equipment and robots rather. There are many now that have lost their job because of technology but those making a career into the technology fields such as computer programmers and repair will advance.
The article talks about Walmart’s strategies and focusing on ways to be more than a retail company. It brings a lot of the company thinks it would be more than retail when it sells nearly anything online. Walmart also affiliates with Amazon to sell items on that website as well. Walmart is using more technology of self-checkout and eliminating cashier positions which really irritates me but will not discuss now.
In 2015, Walmart topped the list of the biggest IT spenders worldwide; the amount being spent was more than USD 10.5 billion. This IT spending entailed the money spent on hardware, software, IT services, telecommunication services, etc. My interpretation of Walmart is they are ahead of the game so to speak with their research and development and have been using threat and opportunity analysis to determine any possible ways to advance without jeopardizing their name. Some companies that are a big name and scattered all over the country have a lot higher funding available to market such as using television and radio while others who are smaller cannot. Walmart also uses how they help participate and volunteer their efforts to help keep people safe especially currently when times are not safe. I personally would not work for the company and only will shop there if I have to.
The money they spend on trying to keep the technology going using equipment to scan items to help with inventory and to know if an item is available. They will spend and purchase any type of new technology for advancing and to use to eliminate the time that it would take for someone to do it. It is worth the extra because, in the long run, it will save them money to use the equipment than to have someone there and paying them. Sam’s Club is also a part of the Walmart family and they also have eliminated jobs to use more technology of self-checkout.
Response #2: In looking at landscape of todays retail business model and visions of the companies, there is no doubt that innovation is the key to success. The technology advances have made leaders adjust quickly to the customers demands all while changing as they do so.
The question of innovation being a threat or opportunity depends on the retailer. The threat is that the retailer does not have a strong foundation to build on, while innovating its next step into the virtual retail world. Does the company have the products to sell online vs. stand alone style shopping. Does the company have leaders with a vision and logistics to manage the growth of online shopping. The opportunity of innovation can make all business relevant if they are knowledgeable the technology available to them. They could reach many more customers by utilizing the internet and technology to advertise to millions of people. Its all based on of they know how to utilize and what to do with all the techonology.
An article (Innovation in Retail: Definition & Examples, 2018) calls out a few companies that utilized innovation to capitalize in the e-commerce world. They were able to see the opportunities and get in front of the movement. Starbucks utilized their mobile wallet to allow the customers to purchase items at their stores and it also allows them to build loyalty points. These points then are used for future purchases, so it keeps the customers coming back for more. The use of Starbucks mobile wallet passed up Apple pay, which says a lot in volume of use. Apple was another company that utilized innovation as they introduced the iPod years ago. It made it easy for the customer to download and listen to music without going to the store to purchase or carrying a device to put your cassette or cd in to listen to. Both companies had an edge because were provided convience.