Given the diminishing cost of communication and information sharing (by analogy to the low cost of storage and distribution, in the case of e-tailers), long-tailed user driven innovation will gain importance for businesses. To get the free app, enter your mobile phone number. This suggests that a variation of one mechanism (internet access) or relationship (the cost of storage) can significantly shift the frequency of occurrence of certain events in the distribution. In statistics and business, a long tail of some distributions of numbers is the portion of the distribution having many occurrences far from the "head" or central part of the distribution. The Tails of Two Cats: Manx and Maine Coon, Reviewed in the United States on January 16, 2013. This is used to describe the retailing strategy of selling many unique items with relatively small quantities sold of each (the "long tail")—usually in addition to selling fewer popular items in large quantities (the "head"). This book has succeeded in making me think much deeper about the power of scale, especially when it come to the Internet. Reviewed in the United Kingdom on April 9, 2012. In Mexico the banks Compartamos and Banco Azteca also service this customer demographic, with an emphasis on consumer credit. The work of Benoît Mandelbrot in the 1950s and later has led to him being referred to as "the father of long tails".[8]. Anderson compared Long Tail to the blockbuster or hit-driven business models of media and retail companies. The Long Tail “Long Tail Business Models are about selling less of more by focussing on offering a large amount of niche products, while each item sells relatively infrequently.” Aggregate sales of niche products can be as profitable as the traditional sales model, where a small amount of bestsellers account for most revenues. We find that the incidence of significantly mutated genes (SMGs) follows a long-tail distribution, with many genes mutated in less than 3% of cases. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required. There was a problem loading your book clubs. Wiley, 1995. Looked at from the producers' side, the long tail has made possible a flowering of creativity across all fields of human endeavour. Long tail definition at Dictionary.com, a free online dictionary with pronunciation, synonyms and translation. Where inventory storage and distribution costs are insignificant, it becomes economically viable to sell relatively unpopular products; however, when storage and distribution costs are high, only the most popular products can be sold. The Long Tail is a book I recommend all my clients to read. It shows the demand for keywords related to batteries, from frequently searched terms at the top to low-volume queries at the bottom. Those economics of storage and distribution then enable the advantageous use of the long tail: for example, Netflix finds that in aggregate, "unpopular" movies are rented more than popular movies. In military thinking, John Robb applies the long tail to the developments in insurgency and terrorist movements, showing how technology and networking allows the long tail of disgruntled groups and criminals to take on the nation state and have a chance to win. The Long Tail: Why the Future of Business is Selling Less of More. Hardcover $17.99 $ 17. In support of their findings, Wenqi Zhou and Wenjing Duan not only find a longer tail but also a fatter tail by an in-depth analysis on consumer software downloading pattern in their paper "Online user reviews, product variety, and the long tail"[1]. In an article published in 2003, these authors showed that, while most of the discussion about the value of the Internet to consumers has revolved around lower prices, consumer benefit (a.k.a. Anderson later extended it into the book The Long Tail: Why the Future of Business is Selling Less of More (2006). Therefore, in these latter cases "tails" correspond to large-intensity events such as large earthquakes and most popular words, who dominate the distributions. The entire world hung on his every word, as they watched their Magic Picture Tubes and reacted to every twitch of his tiny, yet magical tail. In his Wired article Anderson opens with an anecdote about creating a niche market for books on Amazon. The distribution could involve popularities, random numbers of occurrences of events with various probabilities, etc. He highlighted that, when a store has a large distribution channel, it can market low demand products, which can collectively make up market share. Ultimate choice and the key to free marketing, Reviewed in the United Kingdom on January 18, 2010. Reviewed in the United Kingdom on August 29, 2017, Excellent, excellent book that describes (amongst much else) how and why Amazon is such a success, Reviewed in the United Kingdom on October 31, 2013. Bring your club to Amazon Book Clubs, start a new book club and invite your friends to join, or find a club that’s right for you for free. Some of the most successful Internet businesses have used the long tail as part of their business strategy. A team at Wharton did some Long Tail analysis on the Netflix ratings data the company released for its Netflix Prize. The Long Tail idea is that the Internet is pushing demand away from the hits in the green area and into the yellow area of the Long Tail. In the graph shown above, Amazon's book sales would be represented along the vertical axis, while the book or movie ranks are along the horizontal axis. The drive to build a market and obtain revenue from the consumer demographic of the long tail has led businesses to implement a series of long-tail marketing techniques, most of them based on extensive use of internet technologies. (2011). Companies can make use of a series of tools, such as interactive and internet based technologies, to give their users a voice and to enable them to do innovation work that is useful to the company. An MIT Sloan Management Review article titled "From Niches to Riches: Anatomy of the Long Tail"[19] examined the long tail from both the supply side and the demand side and identifies several key drivers. As the cost of reaching consumers drops dramatically, our markets are shifting from a one-size-fits-all model of mass appeal to one of unlimited variety for unique tastes. Social innovation communities formed by groups of users can perform rapidly the trial and error process of innovation, share information, test and diffuse the results. Grameen Bank in Bangladesh has successfully followed this business model. This has led some[who?] The Manx Cat,the powerful King of the Land of Hollyork,was fat and smoked big cigars. It is therefore able to build a viable business stocking a far wider range of movies than a traditional movie rental store. Their data across 200 subject areas shows that a doubling of this influence leads to a 50% increase in revenues from the least popular one-fifth of books.[24][25]. The key supply-side factor that determines whether a sales distribution has a long tail is the cost of inventory storage and distribution. In October 2004, author and entrepreneur Chris Anderson introduced us to “ The Long Tail.” Two years later, he produced his now-notable book, “Long Tail: Why the Future of Business is Selling Less of More,” which is the opposite of selling more of less. The above-mentioned points are quite helpful in offering you a great platform so that you can make use of the strategy in the best way and get exposure and promote your products and get high sales profit from it. [2][3][4] Intuitively, a distribution is (right) long-tailed if, for any fixed amount, when a quantity exceeds a high level, it almost certainly exceeds it by at least that amount: large quantities are probably even larger. Res. For example: Head term: unicorn. Long Tail. These encourage the diversification of products. If the 20th century was about hits, the 21st will be equally about niches. With the digital and hybrid retailers there is no longer a perimeter on market demands. [citation needed] One example of this is YouTube, where thousands of diverse videos – whose content, production value or lack of popularity make them inappropriate for traditional television – are easily accessible to a wide range of viewers. The long-tailed skua or long-tailed jaeger (Stercorarius longicaudus) is a seabird in the skua family Stercorariidae. Anderson described the effects of the long tail on current and future business models beginning with a series of speeches in early 2004 and with the publication of a Wired magazine article in October 2004. There may be an optimal inventory size, given the balance between sales and the cost of keeping up with the turnover. In those cases the infrequent, low-amplitude (or low-revenue) events – the long tail, represented here by the portion of the curve to the right of the 20th percentile – can become the largest area under the line. In other words, whereas traditional retailers have focused on the area to the left of the chart, online bookstores derive more sales from the area to the right. It is a term used in online business, mass media, micro-finance (Grameen Bank, for example), user-driven innovation (Eric von Hippel), knowledge management, and social network mechanisms (e.g. Other very talented people were ignored. Every Person's Guide to Topsy-Turvy Times, Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts, Edge Strategy: A New Mindset for Profitable Growth, Crossing the Chasm, 3rd Edition: Marketing and Selling Disruptive Products to Mainstream Customers (Collins Business Essentials), The Global Code: How a New Culture of Universal Values Is Reshaping Business and Marketing, The Gift: Creativity and the Artist in the Modern World, The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It, Alone Together: Why We Expect More from Technology and Less from Each Other, Convergence Culture: Where Old and New Media Collide, Multimedia: From Wagner to Virtual Reality (Expanded Edition), The Gift: How the Creative Spirit Transforms the World, The Blue Sweater: Bridging the Gap Between Rich and Poor in an Interconnected World. Century was about hits, the 21st will be available for thousands of people the... 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