HOW ENDLESS CHOICE IS CREATING
UNLIMITED DEMAND: Chris Anderson

  By: Adaeze & Michelle
• Wi   r e d Ma g a z i n e d e f i n i t i o n
  of    t h e l o n g t a i l . I t ’s t h e
  my   r i a d of t he ni c he
  pr   o d u c t s wh o s e c o l l e c t i v e
  ma   r k e t s ha r e c a n r i v a l t he
  bl   oc k bus t e r s .




• T h e l o n g t a i l i s wh e n
  s e l l i n g l e s s o f mo r e c a n b e
  j us t a s pr of i t a bl e a s
The Long Tail: Why the Future of Business Is Selling
Less of More
• Be    f or e t he I ndus t r i a l
  Re    v o l u t i o n , mo s t c u l t u r e w a s
  l o   c a l . T h e r e wa s a n e a r l i e r
  e r   a of ni c he c ul t ur e de f i ne d
  by     ge ogr a phy .

• Cu    l t u   r e w a s f r a g me n   t e d
  be    c a u   s e of t he l a c k      of r a pi d
  t r   a ns    por t a t i on a nd
  c o   mmu     ni c a t i on a nd t     hi s
  l i   mi t    e d c u l t u r a l mi   x i ng, ne w
  i d   e a s    a nd t r e nds .

• T h e e a r l y 19t h e r a o f m o d e r n
  i n d u s t r y a n d t h e g r o wt h o f
• I   n    m i d 19t h c e    nt ur y s e v e r a l
  t   e   c hnol ogi e        s e me r g e d . T h e s e
  t   e   c hnol ogi e        s l e d t o t he
  f   i   r s t gr e a t      wa v e o f p o p u l a r
  c   u   l t ur e .



• As       t e c hn   o   l ogy gr e w s o di d
  t h     e a bi l    i   t y f or c ul t ur e ,
  i d     e a s a n   d    t r e nds t o r e a c h
  f u     r t he r    p   l a c e s , c r e a t i ng a
  gr      e a t e r   d   e ma n d f o r p o p u l a r
  c u     l t ur e
MA K E I T , G E T I T O U T T H E R E A N D H E L P
                     ME F I N D I T

• O u r c u l t u r e a n d e c o n o my a r e
  i n c r e a s i n g l y s h i f t i n g a wa y f r o m
  a f o c u s o f a r e l a t i v e l y s ma l l
  n u mb e r o f h i t s a t t h e h e a d o f t h e
  d e ma n d c u r v e , b u t mo v i n g t o w a r d s a
  h u g e n u mb e r o f n i c h e s i n t h e t a i l .

• I n    a n e r a wi t h o u t     t he    c   o   ns t r a i nt s
  of     phy s i c a l s he l f      s pa   c   e   , n a r r o wl y
  t a   r ge t e d goods a n        d s e   r   v   i c e s c a n
  be     a s e c o n o mi c a l l   y a t   t   r   a c t i v e a s
  ma    i ns t r e a m f a r e .
F o r c e 1: D e m o c r a t i z i n g t h e t o o l s o f
pr oduc t i on
• gi v i ng e v e r y one t he c a pa c i t y t o
   c r e a t e = Mo r e s t u f f w h i c h l e n g t h e n s
   t he t a i l .

F   o r c e 2: C u t t i n g t h e c o s t o f
c   o n s u mp t i o n b y d e mo c r a t i z i n g
d   i s t r i but i on
•    a n y o n e c a n ma k e c o n t e n t s o o t h e r s
     c a n e n j o y i t . t h e I n t e r n e t h a s ma d e
     e v e r y o n e a d i s t r i b u t o r = Mo r e
     a c c e s s t o n i c h e s , wh i c h f l a t t e n s
     t he t a i l

F o r c e 3: C o n n e c t    i   n g s u p p l y a n d d e ma n d
• I nt r oduc i ng c         u    s t o me r s t o t h e s e n e w
   a v a i l a bl e goo      d    s a n d d r i v i n g d e ma n d
   d o wn t h e t a i l      =    Dr i v e s b u s i n e s s e s
   f r om hi t s t o n       i    c he s
• Fo    r    e x   a   mp l e w h e n   r e s e a r   c hi ng
  f o   r    Fi    f   a 06 – a 5 y e   a r ol d      g a me
  wa    s    a v   a   i l a bl e on    A ma z o n     we
  f o   u   nd     t   ha t t he ga     me w a s      v e r y
  mu    c   h a    v   a i l a bl e .

• Ho we v e r , wh e n we s e a r c h e d f o r
  F i f a 06 o n H M V i t w a s
  una v a i l a bl e .

• T h i s i s b e c a u s e A ma z o n i s
  a bl e t o pr ov i de da t e d
  p r o d u c t s a s i t h a s t h e me a n s
• A me    r   i c a n Hi s t o r y X i s    a mo v i e
  t ha    t    c a m e o u t i n 1998 w h   e n
  s e a   r   c h i n g f o r t h e DVD     o n H MV
  onl     i   ne a nd a t t he s t or       e i t w a s n ’t
  a v a   i   l a bl e .

• Ho    we v e   r , Ha r r y Po t t e r a n d t h e
  Ph    i l os   o p h e r s S t o n e (2001); t h e f i r s t
  of     t he    h a r r y p o t t e r f i l ms t o c o me
  ou    t 10 y   e a r s a g o wa s a v a i l a b l e
  on    l i ne    a nd a t t he s t or e .

• Ca    s a bl a nc a     (1942) i s a r g u a   bl y o     n   e
  of     t he be s t      f i l ms o f a l l     t i me     a   nd
  a l   t hough a n        o l d mo v i e t h    a t wo     u   l d
  mo    s t l i k e l y    ha v e a ni c he       t a r g   e   t
• Th    us t he e c on       o mi c
  e f   f i c i e nc i e s    of de a l i ng
  on    l y i n bi t e s      w o u l d n ’t j u s t
  be     e x t e nde d i     n t he l ong
  t a   i l but a l s o       i mp r o v i n g t h e
  e c   o n o mi c s o f     t he he a d,
  wh    e r e t he r e a     r e f a r mo r e
  po    unds a t s t a       k e .

• Th    i s    i s ne e dl e s s t o s a y a
  po    we    r f ul a t t r a c t i on a nd
  wi    l l    onl y a c c e l e r a t e t he
  a d   op    t i on of t he t e c hnol ogy .

The long tail complete

  • 1.
    HOW ENDLESS CHOICEIS CREATING UNLIMITED DEMAND: Chris Anderson By: Adaeze & Michelle
  • 2.
    • Wi r e d Ma g a z i n e d e f i n i t i o n of t h e l o n g t a i l . I t ’s t h e my r i a d of t he ni c he pr o d u c t s wh o s e c o l l e c t i v e ma r k e t s ha r e c a n r i v a l t he bl oc k bus t e r s . • T h e l o n g t a i l i s wh e n s e l l i n g l e s s o f mo r e c a n b e j us t a s pr of i t a bl e a s
  • 3.
    The Long Tail:Why the Future of Business Is Selling Less of More
  • 4.
    • Be f or e t he I ndus t r i a l Re v o l u t i o n , mo s t c u l t u r e w a s l o c a l . T h e r e wa s a n e a r l i e r e r a of ni c he c ul t ur e de f i ne d by ge ogr a phy . • Cu l t u r e w a s f r a g me n t e d be c a u s e of t he l a c k of r a pi d t r a ns por t a t i on a nd c o mmu ni c a t i on a nd t hi s l i mi t e d c u l t u r a l mi x i ng, ne w i d e a s a nd t r e nds . • T h e e a r l y 19t h e r a o f m o d e r n i n d u s t r y a n d t h e g r o wt h o f
  • 5.
    • I n m i d 19t h c e nt ur y s e v e r a l t e c hnol ogi e s e me r g e d . T h e s e t e c hnol ogi e s l e d t o t he f i r s t gr e a t wa v e o f p o p u l a r c u l t ur e . • As t e c hn o l ogy gr e w s o di d t h e a bi l i t y f or c ul t ur e , i d e a s a n d t r e nds t o r e a c h f u r t he r p l a c e s , c r e a t i ng a gr e a t e r d e ma n d f o r p o p u l a r c u l t ur e
  • 6.
    MA K EI T , G E T I T O U T T H E R E A N D H E L P ME F I N D I T • O u r c u l t u r e a n d e c o n o my a r e i n c r e a s i n g l y s h i f t i n g a wa y f r o m a f o c u s o f a r e l a t i v e l y s ma l l n u mb e r o f h i t s a t t h e h e a d o f t h e d e ma n d c u r v e , b u t mo v i n g t o w a r d s a h u g e n u mb e r o f n i c h e s i n t h e t a i l . • I n a n e r a wi t h o u t t he c o ns t r a i nt s of phy s i c a l s he l f s pa c e , n a r r o wl y t a r ge t e d goods a n d s e r v i c e s c a n be a s e c o n o mi c a l l y a t t r a c t i v e a s ma i ns t r e a m f a r e .
  • 7.
    F o rc e 1: D e m o c r a t i z i n g t h e t o o l s o f pr oduc t i on • gi v i ng e v e r y one t he c a pa c i t y t o c r e a t e = Mo r e s t u f f w h i c h l e n g t h e n s t he t a i l . F o r c e 2: C u t t i n g t h e c o s t o f c o n s u mp t i o n b y d e mo c r a t i z i n g d i s t r i but i on • a n y o n e c a n ma k e c o n t e n t s o o t h e r s c a n e n j o y i t . t h e I n t e r n e t h a s ma d e e v e r y o n e a d i s t r i b u t o r = Mo r e a c c e s s t o n i c h e s , wh i c h f l a t t e n s t he t a i l F o r c e 3: C o n n e c t i n g s u p p l y a n d d e ma n d • I nt r oduc i ng c u s t o me r s t o t h e s e n e w a v a i l a bl e goo d s a n d d r i v i n g d e ma n d d o wn t h e t a i l = Dr i v e s b u s i n e s s e s f r om hi t s t o n i c he s
  • 8.
    • Fo r e x a mp l e w h e n r e s e a r c hi ng f o r Fi f a 06 – a 5 y e a r ol d g a me wa s a v a i l a bl e on A ma z o n we f o u nd t ha t t he ga me w a s v e r y mu c h a v a i l a bl e . • Ho we v e r , wh e n we s e a r c h e d f o r F i f a 06 o n H M V i t w a s una v a i l a bl e . • T h i s i s b e c a u s e A ma z o n i s a bl e t o pr ov i de da t e d p r o d u c t s a s i t h a s t h e me a n s
  • 9.
    • A me r i c a n Hi s t o r y X i s a mo v i e t ha t c a m e o u t i n 1998 w h e n s e a r c h i n g f o r t h e DVD o n H MV onl i ne a nd a t t he s t or e i t w a s n ’t a v a i l a bl e . • Ho we v e r , Ha r r y Po t t e r a n d t h e Ph i l os o p h e r s S t o n e (2001); t h e f i r s t of t he h a r r y p o t t e r f i l ms t o c o me ou t 10 y e a r s a g o wa s a v a i l a b l e on l i ne a nd a t t he s t or e . • Ca s a bl a nc a (1942) i s a r g u a bl y o n e of t he be s t f i l ms o f a l l t i me a nd a l t hough a n o l d mo v i e t h a t wo u l d mo s t l i k e l y ha v e a ni c he t a r g e t
  • 16.
    • Th us t he e c on o mi c e f f i c i e nc i e s of de a l i ng on l y i n bi t e s w o u l d n ’t j u s t be e x t e nde d i n t he l ong t a i l but a l s o i mp r o v i n g t h e e c o n o mi c s o f t he he a d, wh e r e t he r e a r e f a r mo r e po unds a t s t a k e . • Th i s i s ne e dl e s s t o s a y a po we r f ul a t t r a c t i on a nd wi l l onl y a c c e l e r a t e t he a d op t i on of t he t e c hnol ogy .