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Data Science At Work

“Are Amazon’s new batteries eating into Energizer’s market?”


Data Source Use Case: Online Transaction Data
Hypothesis Category: Competitive Threat

Data 
Key Data Source
Key Data Source
Online transaction data
Star 
Features
Features
  • SKU-level data on Amazon purchases since 2014
  • 1.3m worldwide users covering approx. 2.7m unique brands and 28m unique products
Search 
What Were We Looking For?
What Were We Looking For?
Evidence that incumbent brands could withstand Amazon’s entry into the batteries market
Light Bulb 
What Did We Learn?
What Did We Learn?
Amazon’s brand eats into smaller brands’ market share rather than the market leaders’

We have become used to game-changing disruption whenever Amazon enters a new market. So when it began to report growing market share for its own brand AmazonBasics batteries, it was natural to anticipate havoc for household names such as Energizer, Duracell and Panasonic.

Analysis of transaction data on Amazon’s own platform—35,000 daily unique users over the course of five years—showed that AmazonBasics was taking share from smaller brands, however. While Energizer’s market share did fluctuate a little over the period we looked at, there was very little churn with AmazonBasics.

 

Battery Market Share of Transactions

 

chart 

Source: Amazon, Jumpshot.

 

This example shows how alternative data can potentially reveal the reality of competitive threats long before it becomes evident in standard corporate reporting.

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