gE Blog Series: Big Data Part 3 - Lowering Barriers to Entry
The theory that the internet has greatly lowered barriers to entry into many markets is well established. Many companies have greater access to distribution channels coupled with low capital costs to start up a business in the 21st century. You can add another advantage of doing business in the digitized age: Big Data.
As the world becomes more connected through social media, electronics, tablets, smart phones and laptops, more data is being gathered than ever before. Businesses need to go through all that information and decide very quickly what important conclusions can be drawn from the data. Businesses that do this will have a competitive advantage. International business will become more competitive due to the knowledge that can be gained from data analysis. Every company could possibly have this information available for multiple different markets. Therefore, this information could also possibly lead to lower barriers of entry into new markets for international businesses.
The information gained from Big Data analysis could be used to better understand cultural differences in purchasing decisions and create links that were never before noticed through conventional methods such as focus groups. For example, many companies are utilizing cameras placed throughout stores to track where you look on the shelf, what aisle you walk down, and what items are usually bought with other items.
Big Data would lower the barriers to entry by allowing companies to have a better understanding of the differences of customers in a new cultural market, such as in India where purchasing trends are vastly different than the United States. This lower barrier to entry would allow companies to move more easily to new markets, expanding international business opportunities to not only the large corporations but also small companies who would have previously not had access to such opportunities. Big Data is one of the biggest trends in business right now and it could have an impact on how accessible new markets are for business of all sizes.