User Tools

Site Tools


best_practices:long_tail

Differences

This shows you the differences between two versions of the page.

Link to this comparison view

Both sides previous revision Previous revision
Next revision
Previous revision
best_practices:long_tail [2012/01/02 23:06]
JUW [Theory in Short]
best_practices:long_tail [2012/05/09 15:04] (current)
Line 7: Line 7:
  
  
-{{:​best_practices:​long_tail_curve.png|}}\\ Figure 1: heads {hits} & tails {niche products}((Taken from „Das Märchen vom Long Tail“, available at  
-\\ http://​vox.rhizomicon.com/​2010/​11/​europes-spotify-long-tail-of-music.html)) 
  
  
-\\  + ====== Theory in Short ======
-====== Theory in Short ======+
  
 In his 2006 bestseller “The Long Tail: Why the Future of Business Is Selling Less of More”, Chris Anderson describes a shift in the media business from selling a few “hit-items” in large volumes toward selling a very large number of niche items, each in relatively small quantities. Although Anderson’s research focuses primarily on the media industry, he demonstrates that the Long Tail concept is applicable to other branches as well. The success of the online auction site [[glossary:​e:​ebay|Ebay]] is based on a lot of auctioneers selling and buying small quantities of “non-hit” items. In his 2006 bestseller “The Long Tail: Why the Future of Business Is Selling Less of More”, Chris Anderson describes a shift in the media business from selling a few “hit-items” in large volumes toward selling a very large number of niche items, each in relatively small quantities. Although Anderson’s research focuses primarily on the media industry, he demonstrates that the Long Tail concept is applicable to other branches as well. The success of the online auction site [[glossary:​e:​ebay|Ebay]] is based on a lot of auctioneers selling and buying small quantities of “non-hit” items.
Line 22: Line 19:
  
 **2. Democratization of distribution** ​ **2. Democratization of distribution** ​
-\\ The Internet has made digital content an article of daily use, and dramatically lowered inventory, transaction costs, and communication processes, opening up new markets for niche products.+\\ The Internet has made digital content an article of daily use, and in this way it dramatically lowered inventory, transaction costs, and communication processes, opening up new markets for niche products.
  
 **3. Declining Search costs to connect supply with demand** ​ **3. Declining Search costs to connect supply with demand** ​
Line 30: Line 27:
  ​====== Implications for Strategy ======  ​====== Implications for Strategy ======
  
-It is undeniable that online commerce has significantly broadened customers’ access to products of all varieties, and the Long Tail theory increasingly influences the development and appraisal of business models, particularly in the media and entertainment sector. However, latest research shows that Andersons’ theory has different consequences for producers and retailers, leading to different strategy advice to both groups((Elberse,​ pp. 41-43)):+It is undeniable that online ​[[:​ecommerce|commerce]] has significantly broadened customers’ access to products of all varieties, and the Long Tail theory increasingly influences the development and appraisal of business models, particularly in the media and entertainment sector. However, latest research shows that Andersons’ theory has different consequences for producers and retailers, leading to different strategy advice to both groups((Elberse,​ pp. 41-43)):
  
 **Producers**\\  ​ **Producers**\\  ​
Line 45: Line 42:
  
 **Retailers**\\  ​ **Retailers**\\  ​
-\\ 1. If the goal is to maintain your heavy customers, extend your assortment with more niche products, as particularly this target group has a strong interest in less popular products.+\\ 1. If the goal is to maintain your heavy customers, extend your assortment with more [[:niche products|niche products]], as particularly this target group has a strong interest in less popular products.
  
  
Line 76: Line 73:
 ====== Literature References ====== ====== Literature References ======
  
 +  * Anderson, Chris (2006), "The Long Tail: Why the Future of Business is Selling Less of More", Hyperion, July 11, 2006
   * Anderson, Chris (2007), “The Long Tail - Der Lange Schwanz”, Carl Hanser Verlag, München   * Anderson, Chris (2007), “The Long Tail - Der Lange Schwanz”, Carl Hanser Verlag, München
   * Elberse, Anita (2008, August), “Das Märchen vom Long Tail”, Harvard Business Manager, pp. 32-44   * Elberse, Anita (2008, August), “Das Märchen vom Long Tail”, Harvard Business Manager, pp. 32-44
best_practices/long_tail.1325541975.txt.gz · Last modified: 2012/01/02 22:06 (external edit)