Market Structure of

BIG DATA
A report submitted to

Instructor: Prof. Mita Suthar

Teaching Assistant: Aditi Upadhyay

In partial fulfillment of the requirements of the course

Economics

Submitted By: Divya Nenwani(1714038)

On

24th October 2017

ASSUMPTIONS:
 BIG DATA ANALYTIC FIRMS IN INDIA

(A)INTRODUCTION
Big Data as the name suggests is a data with huge size. It is a term used to describe collection of
data that is large in size and yet escalating with time. Moreover, such a data are also so complex
that traditional management tools are unable to process it. According to Gartner, Big Data
consist of 3V’s, i.e. high volume, high variety and high velocity.

For Example: Morgan Stanley, a global financial service firm faced many issues doing portfolio
analysis on traditional databases and now uses Hadoop (a Java-based programming framework)
to analyze investments “on a larger scale, with better results

Big Data is classified into 3 Categories:

1. Structured Data:
The data having a fixed format and which are already stored in the database of the
company are known as Structured Data. For e.g. Census records, Economics Data (PPI,
GDP,etc),GPS Data.etc

2. Unstructured Data
The data which does not follow any format. The data is a collected from various
heterogeneous sources containing audios, images, videos, simple text file etc. For e.g. the
result of a GOOGLE search, the video posted on YouTube and Facebook.

3. Semi structured Data

Such data is a combination structured and unstructured data. Semi structure data is
unconventional in nature which segregates the available data on the basis of tags and
markers without using the same format as either structured or unstructured. For e.g,
NoSQL documents, XML file etc.
(B) MARKET STRUCTURE

Initially the market structure of big data analytics firms was oligopoly as only few firms
Mu Sigma, Fractal analytics, Latent View, Absolute Data , Global Analytics ,Manthan
etc. In 2011, out of $2 billion invested into big data analytics firms, 25% went to the
firms having connection in India.

So, as Big data analytics is a growing industry with great potential, there has been an
increase in the no. of firms. This has resulted into the shift from oligopoly to
Monopolistic competition in India.

Currently there are more than 45+ big data analytics companies such as:
1. Frrole
2. Absolute Data
3. American Express
4. Citi Bank Analytics
5. Dell
6. EXL Services
7. HP Analytics
8. PwC Analytics
9. Prompt Cloud
10. HSBC Analytics
11. Flutura
12. Metaome
13. Aureus Analytics
14. Fractal Analytics
15. Heckye ………..etc.
(Hadoop:List of best big data analytics companies to work for in India, 2017)
Big data analytic firms in India are a monopolistic competition as the satisfies the following
characteristics:

1. Large Number of Sellers

In a monopolistic competition there are many sellers, which are closely associated with each
other but are not close substitutes. Such firms act independently having limited market share.
The same applies for the big data analytics firms. Currently there are more than 45 firms
doing big data analytics and according to a report by NASSCOM, Analytic Market will
double in year 2017-2018. Thus, there is still a scope of increase in no. of sellers.

2. Product Differentiation

Product differentiation in a monopolistic competition occurs on the basis of brand value, size,
shape, services provided etc. and this product differentiation helps the firms to charge
different price for the product and services. For big data analytics, product differentiation
arises due to different type of data required by different sectors. For e.g. a healthcare sector
would require different structured data as compared to a Public sector or an Insurance
Service sector.

3. Freedom of Entry and Exit

The firms under monopolistic competition the firms have the freedom to enter or exit the
market. This ensures that the existing firms neither have abnormal profits nor have abnormal
losses in long run. In the case of big data analytics, initially there were only few firms
providing this service, but since the market progressed, it gained great demand for big data.
Also there is no cap on the entry of firms, so there has been an increase in the no. of firms
entering this sector.
4. Symmetry

As we know, in symmetry, when a new competitor enters with a distinct trait to the generic
product, the customers of the existing competitors will be diverted to the new competitor.
Thus, the customers will be shared in the market. Considering the Big Data firms, if a new
competitor enters the market with a more refined structured data, the customers from the
existent competitors will divert towards him. This will thus put a dent in the market share of
the existing competitors.

(C) DEMAND CURVE OF BIG DATA ANALYTIC FIRMS

Big data analytic firms being under monopolistic competition, the demand curve is
downwards sloping. An increase in price will lead to decrease in the demand of the goods or
service. Therefore, its highly elastic in nature.
(D) LONG RUN EQUILLIBRIUM
With the increase in demand of big data analytics and higher market potential many firms have
entered in this market which leads to normal profit in long run. The entry of new firms indicates
that the demand for the product is to be shared among the competitors. This will result in shift in
the demand curve for the existing firm to the left.

CONCULSION

Thus from the above report it can be inferred that Big Data firms show Monopolistic
Competition since the market is unregulated and there are high number of competitors.
REFERENCES

https://www.guru99.com/what-is-big-data.html

https://qz.com/26995/big-data-will-be-big-business-in-india/

Bibliography
Hadoop:List of best big data analytics companies to work for in India. (2017, january 7). Retrieved from
advance software: https://www.advantosoftware.com/blogs/list-of-best-big-data-analytics-
companies-to-work-for-in-india/