Leveraging the Long Tail

Leveraging the Long Tail means to describe these successful websites such as Netflix、eBay、iTunes、Rhapsody. It has been mentioned by Chris Anderson chief editor since 2004 in wired.com magazine. The principle indicates if enterprises can follow the three rules to sell products that mean all products almost earn money and bring much invisible benefits for companies on web. What are the three principles? According to Chris Anderson (October 02, 2009) The 1st is lower cost and the 2nd is lower stocks and lower searching of cost. Therefore, in next part will describe more details about the three principles of Leveraging the Long Tail.

As the figure shows if put same categories products together from the high point to the low point is crosswise axle and vertical axle means products sales volume. The phenomenon shows in the past enterprises only believed 20% of products make money so enterprises usually focus on the 20% products and leave 80% products also think low profits of products could not earn acquire profits. However, as the introduction has mentioned if enterprises can apply The Long Tail and follow the three rules on the web that can make all products to make money.

The 1st rule is low cost which means any information on the web can be seen as a product, enterprises can utilize the strategy to development more sale channel for products. For example, blogging is a good platform for ads with selling because small companies do not have to invest huge budget for ads on own website for selling products. These companies just to use the exist platforms to expose all products

The 2nd principle is to use E-Commerce mode to manage all products and create more virtual products for customers. For instance, Apple iTunes is a zero inventory store on the web. It provides digital songs, movies and games and these products always attract many users every day. Briefly, digital stores the inventories are disks capacity and the internet bandwidth thus E-Commerce mode often does not have inventories stress. All products almost can successfully sell. And Apple has used a good price for the majority users that is 0.99$USD for an app.

The 3rd principle is fractal for lower search, Google is a good successful example of search model but, on the web many similar websites are doing same function for sharing and reducing lower search cost such as dig、tag、catalog. In addition, successfully use key words can bring huge flow rate customers as well as volume of trade with profits.

To conclude, Leveraging the Long Tail for the web provides an excellent platform as well push telecoms manufacturer the revolution of services such as VoIP、 perhaps next generation will become very popular in the near future. However, Long Tail for blogging and blogger are a good commercial development to support them.

References

Anderson, C. (2005). What is the Long Tail

Anderson, C. (2005). The Long Tail of Travel

Juran, J. M. (1940). Pareto’s Principle – The 80-20 Rule

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6 Responses to Leveraging the Long Tail

  1. ang 說道:

    Leveraging the Long Tail sounds like could make all products to sell successfuly

  2. TED 說道:

    I have heard the Long Tail but does Chris Anderson mean Internet only?

  3. Chung-Lin Wu 說道:

    I totally agree with that Long tail theory has a great effect upon the turnover volume of the market, especially in record market. In my blog, I also use a music platform, KKBOX, as my example. If you are interested in this platform, you can visit my blog and leave some message, I will very appreciate that.^.^

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