Page 211 - (DK) The Business Book

WORKING WITH A VISION 209

See also: Beating the odds at start-up 20–21 ■ Gaining an edge 32–39 ■ The weightless start-up 62–63 ■
Thinking outside the box 88–89 ■ Small is beautiful 172–77 ■ M-commerce 276–77 ■ Benefitting from “big data” 316–17

vertical axis, and quantity on the The Long Tail is based on a representation of a
horizontal axis, and demonstrates demand curve of the future marketplace (sales are
that people buy more as the price shown vertically, products horizontally). Author
Chris Anderson suggests that overall sales of niche
falls. Anderson represents sales on
products at the thin “tail” of the curve may be
the vertical axis and the number Head greater than more popular products at the “head.”
of products on the horizontal axis, SALES
showing that growth in many
industries will come from the niche Long Tail
end of demand—the Long Tail.
Removing barriers
Supply was once constrained by
factors such as cost of production, PRODUCTS
physical space for storage, and cost
of distribution. Digital processing, from a publisher to meet individual can tailor products and services by
online ordering, and electronic demand. Combined sales of one-of- language and ethnicity, rather than
distribution have removed many a-kind books may be larger than offering to the mass market. Start-
of these barriers. Selling smaller that of bestsellers, and so may equal ups are recognizing the Long Tail
numbers of a greater range of items more profit. Similarly, iTunes can benefits and using the region’s
can result in higher overall sales and offer a longer list of music than any diversity to their advantage. One
profit than selling common items. physical store, and Netflix can example is Brandtology, an online
Books, music, and movies are stream almost any film into your company that analyzes social media
classic examples of the Long Tail living room. When offered almost and online chat, in local languages,
theory. A traditional bookstore can limitless choice, consumers exert for clients in Singapore and Hong
only stock books that are likely to their preferences and spend money. Kong. Native speakers of languages
sell. Amazon, however, can list Asia is a large and growing such as Mandarin, Japanese, and
every book, even though some may market, but it is fragmented by Korean offer social-media analysis
never be sold. Less popular titles many different cultures. Individual to provide localized insights and
that are not stored in its vast countries offer numerous niche interpretation of key issues within
warehouses can be shipped direct opportunities for companies that a particular culture. ■

Chris Anderson Author and entrepreneur Chris editor. Chris Anderson joined
Anderson was born in London Wired magazine in 2001,
in 1961 and moved with his family where he was editor-in-chief
to the US at five. He studied until 2012. He currently lives
physics at George Washington in Berkeley, California, and
University, then quantum is the CEO of 3D Robotics, a
mechanics and science journalism drone manufacturing company.
at the University of California,
Berkeley; he later was a Key works
researcher at Los Alamos
National Laboratory. After 2004 “The Long Tail” (published
working on two leading scientific in Wired magazine)
journals, Nature and Science, he 2006 The Long Tail: Why the
joined The Economist, holding Future of Business is Selling
various positions (in London, Less of More
Hong Kong, and New York), from 2012 Makers: The New
technology editor to US business Industrial Revolution