Walmart Case

The purpose of this memo is to discuss what are the Business and IT issues pertaining to the RFID system implementation at Wal-Mart relating to Chapter 11 and 12 and does this signal the failure of the project. The content of this memo contains and describes the strength, weakness, opportunity, threat, and systems specification of the Business and IT at Wal-Mart.

Wal-Mart's strengths are in maintaining a low-cost structure and bringing low prices to customers. Through economies of scale, Wal-Mart is able to demand the lowest prices from its suppliers. Wal-Mart's strengths also lie in its ability to use and find new IT solutions to support its distribution channels and lowering costs through efficiencies such as its IT project called RFID.

Wal-Mart's weakness in relation to the RFID technology development is imposing a top-down demand on its suppliers before the technology and business matured. This demand at such an embryonic stage of the technology may not be economically sound and cost feasible.

RFID technology is definitely an opportunity that Wal-Mart is first in line to explore. If implemented, RFID could be able to improve the retail supply chain and provide more data in regards to the inventory. It would improve on the efficiencies by keeping a more detailed track of inventory count, specifying the exact location of inventory, and solving problems with incorrect order numbers. The opportunity provided by RFID technology will help to maintain a low cost structure for Wal-Mart, help to provide its customers with low prices, and keep Wal-Mart at the head of the game.

The threat with the implementation of the RFID technology is that it may aid not only competitors, but other industries as well. Competitors and potential competitors will be able to benefit from Wal-Mart's developments on the RFID technology.

System specification formalize the design of an application's user interface methods and products, database structures, and processing and control procedures. Wal-Mart stores are leading the way in implementing RFID technology for better supply-chain management. With their low-cost business models, those retailers maintain their competitive edge by having highly efficient supply chain operations. RFID has the strong potential to reduce supply chain costs, speed the flow of merchandise from factories through distribution centers and to the retail stores,