Student-Led Seminar

PRESENTED TO YOU BY:

Anne Van Der Kamp

Gerko Wijnsma

Joann Westerweller von Anthoni

Gus Cah Ida Bagus Cahaya Purnama

“Netflix got 45 million accounts to watch Birdbox in a week. When was the last time 45
million people went to a Sandra Bullock film at once. Never? They didn’t need promotion or
mass media ads or critics’ reviews or exhibitors betting on popcorn sales. Extraordinary
times.” – Josh Brown
OUTLINE
1. Introduction
2. What is the long tail?
3. Advantages of the long tail
4. Examples
5. Why?
6. Quiz
Introduction

● Chris Anderson (born July 9, 1961).

● The Economist for seven years.

● WIRED magazine in 2001.

● Cofounder and current CEO of 3D Robotics.

● 2004 article The Long Tail in WIRED.
● Expanded into a book in 2006, titled,
The Long Tail: Why the Future of Business Is Selling Less of More.

● Free: The Future of a Radical Price (2009) -> examines the advantages of a strategy where products
and services are initially given to customers for free, and how businesses can profit more long run.
● Makers: The New Industrial Revolution (2012) -> describes how entrepreneurs using open source
What is the Long Tail?

● It is a business strategy that allows companies to

realize significant profits by selling low volumes of
hard-to-find items to many customers.
● The long tail concept considers less popular goods
that are in lower demand.
● The Long tail is supported by the growing number of
online marketplaces.
● Focuses more on specification than general
 Below are the 3 forces that drives the long
tail:
The 3 Forces of Long
● The tools of production have to become
Tail democratized.
● The costs of consumption have to be cut by
democratizing distribution.
● Supply and demand have to be connected.
The Long Tail Rules
Here are nine rules of successful Long Tail
aggregators:

1. Move inventory way in… Or way out.

2. Let customers do the work.
3. One distribution method doesn’t fit all.
4. One product doesn’t fit all, either.
5. One price doesn’t fit all.
6. Share information.
7. Think ‘and,’ not ‘or.’
8. Trust the market to do your job.
9. Understand the power of free.
 The Large Scale Focussing
Advantages of
More Targeted Traffic
The Long Tail
Increase of customer satisfaction

Hypes used for normal products

Less competition
Examples ● Amazon VS Local bookstores
● Kevin Laws: “The biggest money is in
the smallest sales”
Amazon currently lists 32.8 million books for sale
comprising: Paperbacks 22.9m. Hardcover 8.1M.
How does it link to Strategic Management?

● How can we apply Anderson’s book to the Tesla/Shell case?

References
And now it is

Time!!