Introduction to Machine Learning and Three Common Algorithms - Georgia Tech Boot Camps

Companies use anomaly detection to identify and understand actions competitors may take in the marketplace. For example, a retailer may expect to take three share points in every new market they open a store during the first month of operations; however, they may notice certain new stores are underperforming and don't know why. Anomaly detection can be used to identify likely competitive activity which is preventing share growth. Specifically, the anomaly of common products not being found in their shoppers' baskets (e.g., bread, milk, eggs, chicken breast) which may indicate covert competitor incentives that are successfully impacting the retailer's shopper frequency and average order size.