Wal-Mart has grown to become so large that it is able to bully around its customers, employees, and even their suppliers. They have virtually no competition, and with all this accumulated knowledge they are virtually able to predict the future to some degree. That being said I do not have a problem with Wal-Mart collecting so much information about their customers and their habits. All companies keep track of their customers’ information and try to amass as much information as Wal-Mart has, the only difference is that Wal-Mart is so huge that it is able to gather data at such a high rate. As was said in the article there are entire companies devoted to finding information about you so that they can sell it and use it for their own profitable gain. It is actually a relief to know that Wal-Mart does not do this. There is definitely a competitive advantage created over other retailers based on this wealth of information. No other company in the world can plan their product needs better than Wal-Mart, which allows for them to spend less money on inventory issues than all other companies. Less money on inventory means more money going to other areas that need it, making the company even stronger. Like the article said they have the ability to know exactly how many employees they need to have in a store at any given time, and even where they should be located in the store. This allows them to manage their expenses to an even greater degree, something that all companies want to do but almost all struggle to achieve.
When it comes to personal information I do not believe that Wal-Mart has to be seen as a threat to individual security. It is true that Wal-Mart probably has way more information that they would ever need about many individuals who probably are not very interesting, but all they are doing with this information is perfecting their business model and preparing for their customers’ needs. Wal-Mart could care less about what Sally Jo in Bastrop, Texas is buying, but they do care about knowing what everyone in Bastrop, Texas is buying. The personal information is important only to place you into a group, but after that Wal-Mart’s information gains it power in volume, and the information they have is so powerful because volume is Wal-Mart’s specialty. Most importantly, at the end of the day a customer can simply protect themselves by not shopping at Wal-Mart. If the only people who are obtaining your information when you shop at Wal-Mart is Wal-Mart then it is very easy to keep Wal-Mart from learning more about you. People still have the power to make choices in life, and if they are so worried about privacy than they should choose not to willingly give Wal-Mart their information.
Wal-Mart is devastating its suppliers even more than they ever have with the collection of all their product information. Wal-Mart for a long time has negotiated favorable deals for themselves with their suppliers. They are able to dictated their terms to the suppliers and these are usually “an offer they can’t refuse.” Wal-Mart is so large and powerful that suppliers have to accept to their conditions because if they want to remain competitive in the market then they need Wal-Mart to carry their product. In the old days local businesses had to pay money for the mob in exchange for protection. This protection was from the mob themselves so it was necessary for these businesses to accept the terms and be happy they were still safe and in business. In the modern day businesses have to accept Wal-Mart’s terms if they want to be able to stay safe and survive in the business world. While the violence may have disappeared, the domination of the powerful party has not, and in our world “Knowledge is Power.” Wal-Mart’s collection of information only threatens to give them even more bargaining leverage against their suppliers. These companies will have to accept worse and worse deals because Wal-Mart will know enough information to predict exactly what they will need. Wal-Mart will come out a winner in every deal that they make, even more so than they already do. If a company wants to be able to make money these days it seems they will have to take a large profit cut in order to do so, which seems to be pretty contradictory.