Sustainable Competitive Advantage Through Information Technology

Wal-Mart has been able to control its expenses better than its competition. In fact, it ranked number one in its industry for the lowest ratio of expenses to sales. Wal-Mart’s success stands on an amalgamation of value chain activities. Wal-Mart sustains its competitive advantage by exploiting its superior logistics, state-of-the-art technology, “every day low prices” strategy, and well established brand reputation. To identify areas for cost improvement Wal-Mart suppliers analyze their internal processes because they desire to see prices fall over time. In contrast to other retailers Wal-Mart demands a great deal more of its suppliers but to sell to the world's largest retailer, the suppliers are eager to put together the superfluous endeavor. The role of Information Technology (IT) in the success of Wal-Mart cannot be ignored. IT has already proved its usefulness in many business areas including E-Commerce. IT is a force that has revolutionized the way business is done today. Who knows what IT has in store for the organizations of the future but it is evident that to sustain in the ever challenging global corporate world organizations of the future would depend on the use of IT.