Big Data

3377 WordsApr 19, 201314 Pages
Essay 1 A look at almost any of the marketing magazines from the last six months will uncover a large number of articles on “big data”. Examine the subject and discuss how it is relevant to companies like Tesco. Introduction to Big Data In 2012, the concept of ‘Big Data’ became widely debated issue as we now live in the information and Internet based era where everyday up to 2.5 Exabyte (=1 billion GB) of data were created, and the number is doubling every 40 months (Brynjolfsson & McAfee, 2012). According to a recent research from IBM (2012), 90 percent of the data in the world has been created in the last two years alone, and Internet activity in each second today will generate more data than all the data combined in the…show more content…
Hence the vastness and varieties of Big Data make it clear that Big Data can be applied not only to businesses under the digital platform but also to other businesses across the industrial segment like retail, manufacturing, service, finance, health care and such (Lohr, 2012). Big Data and Retail Company like Tesco Due to high competition and better technology, customers become more price sensitive and have more power than ever before. Since buyers can easily go online to compare prices from different sellers, the prices offered by businesses that compete mainly on price will be relatively low. This means that companies like Tesco, one of the four leading UK Supermarkets, cannot rely solely on price competition but need to better understand the behaviour of their customers and use the information effectively (Savitz, 2012). Information technology and digital data become an important factor in boosting the profitability of the retail sector because Big Data is increasingly becoming crucial due to rising internet activities as consumers search, research, compare prices, buy, find support online and more. (Brown et al., 2011). Therefore retail companies have invested in data warehouse storage where they can keep their customer transactions records, inquiry, complaint or feedback in general to analyse overtime (Savitz, 2012). According to

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