The Long Tail Ajay Srinath Section K
The Long Tail
Aug 31, 2014
My take on "The Long Tail" business model for a course on "Entrepreneurship".
Derives material from the article "From Niches to Riches: The Anatomy of the Long Tail" by Erik Brynjolfsson, Yu “Jeffrey” Hu and Michael D. Smith (2006) and from internet sources for the Netflix vs. Blockbuster story. This presentation is purely for academic purposes and no copyright violations are intended.
Derives material from the article "From Niches to Riches: The Anatomy of the Long Tail" by Erik Brynjolfsson, Yu “Jeffrey” Hu and Michael D. Smith (2006) and from internet sources for the Netflix vs. Blockbuster story. This presentation is purely for academic purposes and no copyright violations are intended.
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Transcript
The Long TailAjay Srinath
Section K
Who?
Who?
Vilfredo Pareto
Pareto Principle
Vilfredo Pareto
Pareto Principle
Vilfredo Pareto
What then is the Long Tail?
The Long Tail
a concept coined by Chris Anderson in…
Consider
What should
Stock in its Brick-And-Mortar Stores?
Vilfredo Pareto
Well I would say…80/20!
Which means…
But what about
Or
Or
So…
Enter
To cut a long story short…
“30-40 % of Amazon book sales are represented by titles that wouldn’t normally be found in brick-and-mortar stores”
“The consumer surplus created by providing access to these relatively obscure book titles is more than seven to ten times the value consumers receive from access to lower prices online”
Product Variety Comparison For Internet And Brick-and-mortar Channels
Anatomy of the Long Tail
Key Takeaways
“Business as usual” will not work anymore
Death Internet is a great leveler.
Upgrade/Innovate your Business Models. Or Die.
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