Week 3 - The Long Tail

This post will cover both the Long Tail reading and podcast. This is a concept that I think anyone thinks about when they realize that they might not be part of the majority in whatever the context. There are more of us that prefer something else than there are of you who like the popular thing. Can you direct your business to the Long Tail model? Maybe, if you truly can lower / eliminate a lot of the overhead costs. From a retail standpoint, the Long Tail method makes perfect sense. Create a business based on distribution centers and a solid supply chain, and you can create demand for virtually anything, if you offer it via the web. Of course there might not be shelf space, but there is still warehouse space, and you can still stock out of physical items. The digital items are perfect for this model: music, video, ebooks, etc. The only space a company needs is server space and bandwidth capacity, which is very cheap versus a brick-and-mortar store or even a warehouse.

How do you apply the Long Tail theory to a non-retail company? Any manufacturer of a physical product needs to create inventory, design all the features, distribute it, and keep the business profitable. A service company could theoretically hire niche employees to provide any type of service on demand (especially if it could be completed via the web or phone call). Overall, I find this concept hard to apply to other products and services other than the ones mentioned in the reading and podcast. There would have to be a huge shift in business models. Although, I do enjoy the wide variety of options as a consumer for my music, movies, and books. I feel special because I have my own style.