The long tail  has been create by Chirs Andrson in 2004. Is to investigate the activities of the network paths, it breaking the enterprise of the original 80/20 rule, 80% of the enterprises performance is usually from 20% of the popular products. Businesses began to flow chat at the top of a small number of best-selling goods, and flow chat at the bottom of most commodities is considered to be low sales-force.

Mr. Tim O ‘Reilly mention of Web 2.0 Design Patterns, Small sites make up the bulk of the internet’s content; narrow niches make up the bulk of internet’s the possible applications. Therefor leverage customer-self service and algorithmic data management to reach out to the entire web, to the edges and not just the center, to the long tail and not just the head.

Another piece of blue:

80% of the popular commodity, the use of a variety of small markets, a small amount of the sale of the sum thus reached if the hot commodity in the overall sales. Therefore, we can see, such as drive down the purchase cost of the large chain stores, or may dispense with the physical store rentalnetwork sales business, the other to create impressive sales performancebeyond the best sellers.

Unpopular commodity market size:

Long tail in the unpopular types of goods multiplied by the small sales ofgoods of a single long tail, we can calculate the great scale.

  • The search engine company’s profit is advertising from small companies.
  • The online auction profit from a wide array of small amount of goods.
  • The online music company will be more non-mainstream music to expand market.

Impact of the long tail theory:

Change the thought of enterprise marketing and production, to driven by another wave of commercial forces. The dedicated  people selling goods will find selling goods brought increasingly slim profit margins; willing to commodity opportunities in the long tail, you may add up, the accumulation of substantial business .

Reference

Chirs Andrson, 2004, The Long Tail
Tim O’REILLY, 30 Sep 2005, http://oreilly.com/pub/a/web2/archive/what-is-web-20.html?page=5
Wikipedia.  Last update on May 25 2012, Long Tail
Advertisements