The Long Tail by Chris Anderson
Why Read it
- if you are selling just at the head then you are missing out on perhaps 80% of the demand and could be outflanked by competition.
What is the Long Tail?
Chris Anderson’s book is an important book in helping us to understand the economics of how the Internet is providing unlimited choice; where the costs of providing an “unlimited shelf space” are so low that the range of products can be extended indefinitely beyond a short head of a few hit making or market leading products, to a much larger market of bewildering variety of products.
Chris Anderson brings together extensive sales data from the entertainment industry to show that for digital goods; such as films and music, the endless Long Tail is many times larger than found in the short head and hence presents a tremendous opportunities for new sales for companies that can tap into this market.
What are the Key Learning Points?
It is the new economic model that the Internet enables that makes this possible, costs in supply and demand side drive more business in the Long Tail. The economics of broadcast media distribution, and the entertainment industries marketing machine has distorted the market towards a market of few hits, selling individually in large volumes. The new economic model changes all that, three powerful forces are at work:
- Democratising the Tools of Production
- Dramatic Cost Reduction in Storage and Distribution Costs
- Search and Recommendations are helping customers find products in the tail
The Long Tail is composed of a massive number of niche products each finding their own market. So Chris Anderson brings a clear shining light on helping us understand the business model that lies behind the success of iTunes, Ebay, Amazon and other Internet businesses.
But this is only to touch on but a small part of the value that this book brings. It is how these forces are spilling out into a wide array of industries and how this is re-shaping our culture, and the world of business.
Key Take Aways
There are profound lessons to be learned in study the conclusions in this book. The Long Tail is redrawing the competitiveness of businesses in many different industries, from beer, to fashion, from airlines to software development. Consumers have new power in their hands and this is fuelling sources of new growth. The economics of abundance and the explosion of customer centric niche markets will force sales managers and business leaders to learn new lessons and rethink their approach to their markets in order to survive and thrive into C21st.
Ask about our forthcoming e-Training Class on “Understanding Business in the C21st” if you are interested in understanding how we have taken the conclusions from the Long Tail and other recent research to produce a complete view on modern business realities and how understanding this environment is necessary in order to produce winning sales strategies.
Other Recommended Books to Read
For a contrary view on desirability of unlimited choice.
For the inside story on the history of Google and how the power of search is reshaping the power of the Internet as an economic force.
Related Training
Look out for our forthcoming e-course in “Understanding Business in the 21st Century C21st”.
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