The long tail… E-business assignment by Lina Benseghir
What’s the concept about ? <ul><li>The long tail is a new business model , introduced by Chris Anderson, regarding mostly the entertainment industry. </li></ul><ul><li>How does it work ? It is based on providing each consumer with the a large choice , without focusing on what will please the majority , but rather on opening various possibilities so as to suit as many tastes & individual choices as the online media enable (which means quite a lot) . </li></ul><ul><li>The individual matters more than the mass </li></ul>
How is it different than 'traditional' retail concepts?
<ul><li>Traditional retail concepts have to deal with limited resources (space, time & money). </li></ul><ul><li>To be profitable, it has to reflect what pleases the majority (the so called «hits« ) which ends up narrowing customers« minds & cultural knowledge (by «imposing « a conformist behavior). </li></ul>
… New media & post-modern retail concepts (the long tail) <ul><li>Main characteristics : </li></ul><ul><li>Lower cost (hosting web pages) </li></ul><ul><li>Unlimited resources (the storage space is virtual) </li></ul><ul><li>Emphasizing word-to-mouth to promote the «misses« (not so popular items) </li></ul><ul><li>"The biggest money is in the smallest sales". Kevin Laws </li></ul><ul><li>Revenue comes from the variety of choice & the techniques to " guide" consumers through the purchasing process </li></ul>
What issues will an e-business face when using the Long Tail as the method for growing revenue ? <ul><li>Offering the largest choice " at your fingertips " (from popular to independent music or movies for instance) </li></ul><ul><li>Basing the strategy on very low prices (to discourage piracy) </li></ul><ul><li>Memorizing consumers« taste to lead them through their daily maze of choice (both handy & time saving for them) </li></ul><ul><li>Combining both long tail & standard retail to remain profitable </li></ul>
My long tail link <ul><li>L'effet long tail appliqué au référencement </li></ul>
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