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class given at ITESO University - Guadalajara. Discusses the general aspects of the Long Tail based on the book by Chris Anderson.
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Raul Hernandez Arthur
Webmarketing
The Long Tail
Raul Hernandez Arthur
What is “The Long Tail” ?
• The Long Tail– Statistical Distribution “very low probability of occurrence”.
• Pareto Principle– 80 / 20 rule
• The Long Tail– Why the Future of Business Is Selling Less of More
Raul Hernandez Arthur
ECAST
• What percentage of the 10,000 albums sold at least one track a quarter ?
Raul Hernandez Arthur
ECAST
• What percentage of the 10,000 albums sold at least one track a quarter ?
98%
Raul Hernandez Arthur
Touching the Void
• Joe Simpson near fatal climb of the 6344m climb in Peru.
Raul Hernandez Arthur
Into Thin Air
• Joh Krakauser ascent of Mount Everest wich turned catastrophic.
Raul Hernandez Arthur
Amazon
Raul Hernandez Arthur
Amazon
"We sold more books today that didn't sell at all yesterday than we sold today of all the books
that did sell yesterday."
Raul Hernandez Arthur
3 Forces of the Long Tail
• Democratize the Tools of Production
Raul Hernandez Arthur
Production
• The PC
Give people the capacity to create and GEMS will emerge
# ALBUMS released grew 36% ! - 44,000 in 2004 - 60,000 titles in 05
300,000 free in MySpace
Raul Hernandez Arthur
New Producers
• Never understimate the power of a million amateurs with keys to the factory– Feb 23, 1987– Kamiokande II
Raul Hernandez Arthur
3 Forces of the Long Tail
• Democratize the Tools of Distribution
Raul Hernandez Arthur
Distribution
• Wal-Mart set up the worlds most sofisticated supply chain.
• Now you can do it in eBAY
Raul Hernandez Arthur
3 Forces of the Long Tail
• Connect Supply and Demand
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Connect Supply - Demand
• Search • Filters• Recommendations
Raul Hernandez Arthur
Long Tail Examples
Force Business Example
1 Democratize Production
Long Tail Toolmakers, Producers
Digital Video cameras, Desktop music and video editing software,
blogging tools
2 Democratize Distribution
Long Tail Aggregators Amazon, eBay, iTunes, Netflix
3 Connect Supply and Demand
Long Tail Filters
Google, Blogs, Rhapsody, recommendations and best seller
lists.
Raul Hernandez Arthur
Music Industry
• Rhapsody Overall
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Brit Rock
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Ethnic Fusion
Raul Hernandez Arthur
Long Tail Rules
• Make Everything Available• Help me Find it
Raul Hernandez Arthur
Rules
• Lower your costs– More inventory– Let customers do the work
• Peer production
• Think Niche– One distribution Method doesnt fit all– One Product Doesnt fit all– One Price doesnt fit all
Raul Hernandez Arthur
Rules
• Lose Control– Share Information– Think “and” not “or”– Trust the market to do the job– Understand the power of “Free”
