EXPLORATORY DATA ANALYSIS
CHANNELING OPEN DATA INTO BUSINESS FRAMEWORKS
At the outset of any challenge, but especially for the complex and ambiguous ones that data scientists often face, structuring a thought process to approach the fundamental issue is one of the initial tasks. Many industries employ subject matter experts that have domain-specific knowledge, where unique paradigms of thinking are continually developed, taught and enhanced.
A functional organizational structure separates employees with specific skills into departments such as Human Resources, Sales, Marketing, Finance and Engineering, etc. This can produce a silo effect, in which useful information is created, but not necessarily shared. In response, companies assemble cross-functional teams to facilitate sharing and learning across the organization.
These teams can increase overall company effectiveness because they strengthen the firm’s interdependent internal network. For example, strategic decisions can be improved by incorporating, say, information and insights inferred by data scientists. So let’s take a look at how rapidly growing data can be channeled into intuitive frameworks that are familiar to business leaders.
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PET CARE INDUSTRY | BUSINESS INTELLIGENCE | BCG GROWTH-SHARE MATRIX | FEATURE ENGINEERING
Learn about The Growth-Share Matrix (a.k.a. The BCG Matrix)...
View the interactive chart of The BCG Matrix for the pet care industry in Plotly...
- The BCG Growth-Share Matrix
The BCG Matrix evaluates a market based on constituent growth rates and market share, creating four quadrants called Dogs, Question Marks, Stars and Cash Cows. - New York Neighborhoods
The New York State Department of Health’s ZIP Code Definitions of New York City Neighborhoods that subdivides the city into 42 manageable Neighborhoods. - Competitor Concentration
Market concentration is a fundamental measure of industry competitiveness, where markets can range between perfect and monopolistic competition. - Market Size
By selecting only the active dog licenses in every calendar year, we can calculate the 5-Year Compound Annual Growth Rate (CAGR) from 2014 to 2019 for each neighborhood.
APIS | YELP FUSION API | NYC OPENDATA | REQUESTS | SQL | SQLITE3 | JSON | TIME
The American Pet Products Association (APPA) estimates that the pet care industry will exceed $75 billion in 2019, increasing by 3.9% over the previous year. Consumer spending categories are led by pet food ($32 billion), veterinary care ($19 billion) and supplies & OTC medicine ($16 billion).
New York State Department of Health Zip Codes
- ZIP Code
- Neighborhood
- Borough
- 5 Boroughs
- 42 Neighborhoods
- 178 ZIP Codes
First 10 Neighborhoods in New York, Mixed Format
First 10 Neighborhoods in New York, Long Format
Yelp Pet Stores and Pet Services
- Business Category
- Business ID
- Business Name
- Is Closed / Open
- Review Count
- Rating
- Zip Code
- 47 active Business Categories in the pet care industry
- 3,274 unique pet stores and services listed in 2019
- 1,502 unique pet stores and services actively operating in 2019
First 10 New York Pet Stores and Pet Services Actively Operating in 2019, Yelp Fusion API
- Animal Name
- Animal Gender
- Animal Birth Month
- Breed Name
- Borough
- Zip Code
- Community District
- City Council District
- Congressional District
- State Senatorial District
- License Issued Date
- License Expired Date
- 121,713 licensed dogs in New York City
- License Issued Year
- License Expired Year
First 10 of 121,713 New York Licensed Dogs from 2014–2022, NYC OpenData
PYTHON | PANDAS | PLOTLY | SEABORN | MATPLOTLIB | NUMPY
- Competitor Concentration
- Market Size
- Data Limitations
Concentration Ratios for the Top 8 Firms in the New York Pet Care Industry
- Total percentage of market share grouped by business name
- CR4 of top four firms (8.9%) and CR8 of top eight firms (11.9%)
- Herfindahl-Hirschman Index (HHI) of 31 out of 10,000 (high competition)
Concentration Ratios for the Top 8 Neighborhoods in the New York Pet Care Industry
- Total percentage of market share grouped by neighborhood
- CR4 of top four neighborhoods (30.6%) and CR8 of top eight neighborhoods (49.9%)
- Herfindahl-Hirschman Index (HHI) of 448 out of 10,000 (low density)
Market Share and Growth Rate (2014–2019) of Pet Care Industry for First 10 Neighborhoods in New York
- Total number of active dog licenses and market share per year grouped by neighborhood
- 5-Year Compound Annual Growth Rate (CAGR) from 2014 to 2019 grouped by neighborhood
- Total number of dogs per store grouped by neighborhood
Data Limitations
- The market share of pet businesses is only calculated by the number of physical store locations held by a business or a within a given neighborhood, which could be improved with revenue or foot traffic data.
- The New York City Economic Development Corporation estimates that only 20% of dogs are licensed in New York, so it is important to note that the NYC Licensed Dog Dataset is only a sample of the entire dog population.
- The Dog Dataset began tracking data in 2014, so there is a noticeable spike in registrations in the subsequent years. This growth in registrations should not be confused with the growth of the actual dog population.
- The Dog Dataset was last updated in 2017, so recently issued licenses are not captured, while ongoing expirations sunset the dog population by 2022. This gap in data can affect the CAGR rate depending on years considered.
- Given the limitations with any dataset, we should now feel confident that we can collect open data sources, perform a market analysis and visualize the BCG Matrix so that our data can be easily relatable to business leaders.
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