Friday, February 4, 2011

An Alternative Perspective to the Long Tail!

   The long tail concept will always present different views from anybody who gains a better understanding of it. I believe both parts sides have very strong points to justify their sides. Let's take a look at what Joel Rubinson and his thoughts are.
   I also agree with his points about the long tail theory. Technology is changing greatly and companies must understand that consumers now have more choices and greater purchasing power. Companies need to use various other sources and focus on a larger media base. When we focus on the end of the long tail, we can see huge profit margins. Companies such as iTunes, Pandora, Netflix, etc. can all attest to the long tail theory.
   As we see, the companies named are hugely successful and deal mostly with media and entertainment. But what about niche markets that call for items that are only purchased once for specific reasons? Dr. Elberse believes that the Long Tail should be used for specific markets and specific target demographics.  What I don't understand is that Dr. Elberse stresses the fact that if you were to use the long tail, that one should focus more on the hits, rather than the niche markets. If it's a digital market, regardless of hits or niche's, when consumers have their choice in what they want, everything becomes a hit.  Of course, her point is extremely valid, but to some extent. I think everyone will agree that when starting a business that one should focus on the larger segment. Dr. Elberse also stressed that when focusing on the tip of the long tail that businesses should keep costs as low as possible. We see a good point again, but when you're in a digital marketplace, shelf costs are obsolete.
    Again, there will always be a debate in what the long tail is and how it actually affects the digital world. My opinions are still with the Joel Rubinson as we can actually see specific companies being hugely successful. I also think that what Dr. Elberse is correct in some certain aspects. Of course one would do some kind of research before jumping into a strategic conclusion. Different markets attract different consumers. Specific consumers want specific choices.

1 comment:

  1. Good discussion of the issues related to the long tail. Yes, the following of any strategy to the exclusion of another and disregarding individual circumstances is a recipe for disaster. Clearly, having a base of "hits" provides added potential for pursuing long-tail niches.

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