The Long Tail
 Put everything out there    In a Long Tail Model, the combined sales of niche items are     comparable to those of top ...
 Higher storage and distribution costs    A physical store requires additional staffing and maintenance     costs to ope...
 Minimal storage and distribution costs    Reduced costs allow vendors to make a vast range of products     available at...
 Increased choice    By using a purely digital model, Apple has been able to provide a vast      catalogue of products o...
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  • 18/07/12
  • 18/07/12
  • 18/07/12
  • 18/07/12
  • 18/07/12
  • Net205 press template_(draft1)

    1. 1. The Long Tail
    2. 2.  Put everything out there  In a Long Tail Model, the combined sales of niche items are comparable to those of top selling items  The reduced costs of using a purely digital model encourages digital vendors to make available as many items as they possibly can Make it easy to find  Businesses with a Long Tail model act as aggregators  An aggregator provides customers with access to a wide range of goods in a single, easy to use location Basic principles of the Long Tail
    3. 3.  Higher storage and distribution costs  A physical store requires additional staffing and maintenance costs to operate Limited physical space means that a business will only stock items they are confident of making a profit on  Reduces the diversity and availability of products in stock Market is limited by geographical location  Limits the amount of potential customers to the local population within a specific geographical area Bricks and Mortar store
    4. 4.  Minimal storage and distribution costs  Reduced costs allow vendors to make a vast range of products available at more affordable prices than a physical store Overcomes the limitations of time and space  Items are available for purchase 24 hours a day, 7 days a week from any location with Internet access Ability to engage directly with customers  Utilising user profiles, social media and user generated content to provide a customised experience for each user Digital Vendor
    5. 5.  Increased choice  By using a purely digital model, Apple has been able to provide a vast catalogue of products on the iTunes store with relatively low cost.  Reduced storage and distribution costs allow Apple to offer products through iTunes at more affordable prices than physical stores Easy to use  The iTunes Store provides a user friendly interface which allows users to easily search and purchase a wide range of items Integration with existing product range  Items purchased from iTunes can be easily transferred to other Apple devices such as the iPod, iPad and iPhone iTunes & the Long Tail

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