Managers used to believe that success only came from selling a huge number of a few products, or having blockbuster sellers. Today’s best managers know that it is also possible to be successful by selling only a few of a huge number of different products. The web enables a tremendous amount of products to be displayed and sold at very low costs. However, companies may still want to cater to the tastes of the biggest customers with their biggest selling products. Completely going after a smaller, niche market may not be the best course of action. A combination of the two approaches can result in the greatest number of overall sales.
Source: Elberse, A. 2008, July-August. Should you invest in the long tail? Harvard Business Review, 88-96.
Thursday, May 14, 2009
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