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The Long Tail concept

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  • 1. The long tail… E-business assignment by Lina Benseghir
  • 2. What’s the concept about ?
    • The long tail is a new business model , introduced by Chris Anderson, regarding mostly the entertainment industry.
    • 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) .
    • The individual matters more than the mass
  • 3. A picture is worth a 1000 words…
  • 4. How is it different than 'traditional' retail concepts?
  • 5. 
    • Traditional retail concepts have to deal with limited resources (space, time & money).
    • 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).
  • 6. … New media & post-modern retail concepts (the long tail)
    • Main characteristics :
    • Lower cost (hosting web pages)
    • Unlimited resources (the storage space is virtual)
    • Emphasizing word-to-mouth to promote the «misses« (not so popular items)
    • "The biggest money is in the smallest sales". Kevin Laws
    • Revenue comes from the variety of choice & the techniques to " guide" consumers through the purchasing process
  • 7. What issues will an e-business face when using the Long Tail as the method for growing revenue ?
    • Offering the largest choice " at your fingertips " (from popular to independent music or movies for instance)
    • Basing the strategy on very low prices (to discourage piracy)
    • Memorizing consumers« taste to lead them through their daily maze of choice (both handy & time saving for them)
    • Combining both long tail & standard retail to remain profitable
  • 8. My long tail link
    • L'effet long tail appliqué au référencement