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Coursera Capstone: IBM Applied Data Science Capstone

This document summarizes a data science capstone project that analyzed locations in Kuala Lumpur, Malaysia to recommend where to open a new shopping mall. The project used data from Wikipedia, geocoding APIs, and Foursquare to cluster neighborhoods by their concentration of existing malls. It identified neighborhoods with few existing malls (Cluster 1) as the best locations for a new mall to face less competition. The recommendations aim to help property developers select high potential areas that are not already oversaturated.

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773 views

Coursera Capstone: IBM Applied Data Science Capstone

This document summarizes a data science capstone project that analyzed locations in Kuala Lumpur, Malaysia to recommend where to open a new shopping mall. The project used data from Wikipedia, geocoding APIs, and Foursquare to cluster neighborhoods by their concentration of existing malls. It identified neighborhoods with few existing malls (Cluster 1) as the best locations for a new mall to face less competition. The recommendations aim to help property developers select high potential areas that are not already oversaturated.

Uploaded by

johnf
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Coursera Capstone

IBM Applied Data Science Capstone

Opening a New Shopping Mall in Kuala Lumpur,


Malaysia

By: Chia Hooi Lim


January 2019
Business Problem
• Location of the shopping mall is one of the most important decisions that will
determine whether the mall will be a success or a failure
• Objective: To analyse and select the best locations in the city of Kuala Lumpur,
Malaysia to open a new shopping mall
• This project is timely as the city is currently suffering from oversupply of shopping
malls
• Business question
➢In the city of Kuala Lumpur, Malaysia, if a property developer is looking to
open a new shopping mall, where would you recommend that they open it?
Data
• Data required
➢List of neighbourhoods in Kuala Lumpur
➢Latitude and longitude coordinates of the neighbourhoods
➢Venue data, particularly data related to shopping malls

• Sources of data
➢Wikipedia page for neighbourhoods
(https://en.wikipedia.org/wiki/Category:Suburbs_in_Kuala_Lumpur)
➢Geocoder package for latitude and longitude coordinates
➢Foursquare API for venue data
Methodology
• Web scraping Wikipedia page for neighbourhoods list
• Get latitude and longitude coordinates using Geocoder
• Use Foursquare API to get venue data
• Group data by neighbourhood and taking the mean of the frequency of
occurrence of each venue category
• Filter venue category by Shopping Mall
• Perform clustering on the data by using k-means clustering
• Visualize the clusters in a map using Folium
Results
• Categorized the neighbourhoods
into 3 clusters :
➢Cluster 0: Neighbourhoods with
moderate number of shopping
malls
➢Cluster 1: Neighbourhoods with
low number to no existence of
shopping malls
➢Cluster 2: Neighbourhoods with
high concentration of shopping
malls
Discussion
• Most of the shopping malls are concentrated in the central area of the city
• Highest number in cluster 2 and moderate number in cluster 0
• Cluster 1 has very low number to no shopping mall in the neighbourhoods
• Oversupply of shopping malls mostly happened in the central area of the city,
with the suburb area still have very few shopping malls
Recommendations
• Open new shopping malls in neighbourhoods in cluster 1 with little to no
competition
• Can also open in neighbourhoods in cluster 0 with moderate competition if have
unique selling propositions to stand out from the competition
• Avoid neighbourhoods in cluster 2, already high concentration of shopping malls
and intense competition
Conclusion
• Answer to business question: The neighbourhoods in cluster 1 are the most
preferred locations to open a new shopping mall
• Findings of this project will help the relevant stakeholders to capitalize on the
opportunities on high potential locations while avoiding overcrowded areas in
their decisions to open a new shopping mall
Thank you!

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