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Leveraging the Long Tail

May 7, 2011

Leveraging the long tail is a web 2.0 pattern described  by Tim O’Rily which refers to selling a large number of  less popular items in small quantities to consumers who are apart of a specialized niche, this allows them to have the majority of the market as there is few competitors, therefore the need to sell as frequently is not as important.

With the emerge of Web 2.0 applications, applying the theory of leveraging the long tail to become successful has become alot simpler. many web based companies such as amazon are at the top of their market, such as Amazon, Ebay, these companies are within the “head” the top of the market, however many businesses on the internet target a niche market and successful leverage the long tail, obviously if you target a niche market you will have less competition which will allow you to become more well known in your market.

Quickflix should be a great example to represent the pattern of “Leveraging the Long Tail”. It provides a large enough availability of choice for consumers. Users can not only rent popular movies, but also can find “Long Tail” movies that are rarely found in the video stores. Quickflix also provides an alphabetical searching way for users to search the movie specifically. In addition, by using the rental method, users can find some movies by themselves. It clearly reduces the cost and increase users satisfaction.

In summary, the concept of long tail is an important milestone in Internet development. Internet technology can solve many of the traditional constraints of economics. As a consequence, it provides a wider range of ideas for the businesses. The long tail is a very significant concept that can guide a company to have a tactical way of thinking. Therefore, how to use this concept to gain profit is the most critical key.

References:

O’Reilly, Tim. (2005). What is Web 2.0: Design Patterns and Business Models for the Next Generation of Software.
Wikipedia. 2010. Long Tail.

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3 Comments
  1. Hi Ben, Great post I like your Long Tail example “Quickflix” and how this web site using The long Tail by providing movies that are rarely found in stores.

    Thank you

  2. Sup Ben, what’s happening with life mate?

    You’ve selected a good example of a product that provides niche content to their consumers. I have certainly heard of Quickflix, not sure but I believe it is owned by Video Ezy. Damn, have you seen many video stores around Brisbane, there’s not alot of them around these days cause all I’ve witnessed is stores closing down one by one. We all obviously know why? It’s called torrent sites…… oops, sorry I mean Netflix, Quickflix, Bigpond movies and all the other movie rental services.

    Hey Ben, did you hear about Youtube entering the movie rental market, here is a link for you to read: http://tiny.cc/ugk22, so…. if Youtube happens to take a massive leap to stardom, this kinda leads me to ask you for your opinion on the future of niche applications like Quickflix, Netflix? Where do you see them heading?

    Maybe a possible change of business structure where they allow consumers to download the movie straight from the site? Just a thought.

  3. great post and nice choice of topic

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