long tail business models
reflections for business strategists!
a concept coined by Chris Anderson in…
it’s about selling less of more…
sales
focusing on a small number of products with large volume!
number of products
sales
focusing on a large number of products with low volume!
number of products
what does this mean for business models?
?
example: music business
sales
focusing on a small number of products with large volume!
number of products
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
KEY RESOURCES
DISTRIBUTION CHANNELS
COST STRUCTURE
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
super-star ! artists & hits
KEY RESOURCES DISTRIBUTION CHANNELS
COST STRUCTURE
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
super-star ! artists & hits
KEY RESOURCES DISTRIBUTION CHANNELS
mass market!
COST STRUCTURE
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
super-star ! artists & hits
KEY RESOURCES DISTRIBUTION CHANNELS
mass market!
COST STRUCTURE
REVENUE STREAMS
huge revenu es from few artists!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
super-star ! artists & hits
KEY RESOURCES DISTRIBUTION CHANNELS
mass market!
retail outlets!
! radio & TV
COST STRUCTURE REVENUE STREAMS
huge revenu es from few artists!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
finding talent!
super-star ! artists & hits
KEY RESOURCES DISTRIBUTION CHANNELS
mass market!
retail outlets!
! radio & TV
COST STRUCTURE REVENUE STREAMS
huge revenu es from few artists!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
finding talent! marketing!
KEY RESOURCES
super-star ! artists & hits
DISTRIBUTION CHANNELS
mass market!
retail outlets!
! radio & TV
COST STRUCTURE REVENUE STREAMS
huge revenu es from few artists!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
finding talent! marketing!
KEY RESOURCES
super-star ! artists & hits
DISTRIBUTION CHANNELS
mass market!
protected content!
COST STRUCTURE
retail outlets!
! radio & TV
REVENUE STREAMS
huge revenu es from few artists!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
finding talent! marketing!
distribution channel!
KEY RESOURCES
super-star ! artists & hits
DISTRIBUTION CHANNELS
mass market!
protected content!
COST STRUCTURE
retail outlets!
! radio & TV
REVENUE STREAMS
huge revenu es from few artists!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
finding talent! marketing!
distribution channel!
KEY RESOURCES
super-star ! artists & hits
DISTRIBUTION CHANNELS
mass market!
protected content!
COST STRUCTURE
retail outlets!
! radio & TV
REVENUE STREAMS
talent “production” !
marketing!
huge revenu es from few artists!
compare that to…
sales
focusing on a large number of products with low volume!
number of products
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
KEY RESOURCES
DISTRIBUTION CHANNELS
COST STRUCTURE
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform for musicians & fans/buyers!
KEY RESOURCES DISTRIBUTION CHANNELS
COST STRUCTURE
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform for musicians & fans/buyers!
KEY RESOURCES DISTRIBUTION CHANNELS
niche segments!
COST STRUCTURE
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform for musicians & fans/buyers!
KEY RESOURCES DISTRIBUTION CHANNELS
niche segments!
niche segments!
niche segments!
COST STRUCTURE REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform for musicians & fans/buyers!
KEY RESOURCES DISTRIBUTION CHANNELS
niche segments!
niche segments!
matchmaking with taste!
niche segments!
REVENUE STREAMS
COST STRUCTURE
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform for musicians & fans/buyers!
KEY RESOURCES DISTRIBUTION CHANNELS
niche segments!
niche segments!
matchmaking with taste!
niche segments!
REVENUE STREAMS
COST STRUCTURE
music subscription service!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform for musicians & fans/buyers!
KEY RESOURCES DISTRIBUTION CHANNELS
niche segments!
niche segments!
matchmaking with taste!
niche segments!
REVENUE STREAMS
COST STRUCTURE
small revenu es from many artists!
music subscription service!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform for musicians & fans/buyers!
KEY RESOURCES DISTRIBUTION CHANNELS
niche segments!
niche segments!
matchmaking with taste!
online!
niche segments!
COST STRUCTURE
REVENUE STREAMS
small revenu es from many artists!
music subscription service!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform for musicians & fans/buyers!
KEY RESOURCES
ies! communit
niche segments!
niche segments!
DISTRIBUTION CHANNELS
matchmaking with taste!
online!
niche segments!
COST STRUCTURE
REVENUE STREAMS
small revenu es from many artists!
music subscription service!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform for musicians & fans/buyers!
KEY RESOURCES
ies! communit
niche segments!
niche segments!
DISTRIBUTION CHANNELS
breadth of platform!
matchmaking with taste!
online!
niche segments!
COST STRUCTURE
REVENUE STREAMS
small revenu es from many artists!
music subscription service!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform management!
platform for musicians & fans/buyers!
ies! communit
niche segments!
niche segments!
KEY RESOURCES
DISTRIBUTION CHANNELS
breadth of platform!
matchmaking with taste!
online!
niche segments!
COST STRUCTURE
REVENUE STREAMS
small revenu es from many artists!
music subscription service!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform management!
content producers!
platform for musicians & fans/buyers!
ies! communit
niche segments!
niche segments!
KEY RESOURCES
DISTRIBUTION CHANNELS
breadth of platform!
matchmaking with taste!
online!
niche segments!
COST STRUCTURE
REVENUE STREAMS
small revenu es from many artists!
music subscription service!
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platform management!
content producers!
platform for musicians & fans/buyers!
ies! communit
niche segments!
niche segments!
KEY RESOURCES
DISTRIBUTION CHANNELS
breadth of platform!
matchmaking with taste!
online!
niche segments!
COST STRUCTURE
REVENUE STREAMS
platform maintenan ce!
small revenu es from many artists!
music subscription service!
we moved from a…
marketing & distribution business for stars!
to an..
enabling and match-making business for new & niche talent!
so this is how a long tail business model looks…
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platforms for niche products and services
KEY RESOURCES DISTRIBUTION CHANNELS
focus on match-making
large breadth of niche segments
COST STRUCTURE
REVENUE STREAMS
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platforms for niche products and services
KEY RESOURCES DISTRIBUTION CHANNELS
focus on match-making
large breadth of niche segments
COST STRUCTURE
REVENUE STREAMS
selling little of more
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
platforms for niche products and services
KEY RESOURCES
online interaction & communities large breadth of niche segments
focus on match-making
DISTRIBUTION CHANNELS
online and information rich channels
COST STRUCTURE
REVENUE STREAMS
selling little of more
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
match-making platform management
KEY RESOURCES
platforms for niche products and services
online interaction & communities large breadth of niche segments
platform breadth & reach
COST STRUCTURE
focus on match-making
DISTRIBUTION CHANNELS
online and information rich channels
REVENUE STREAMS
selling little of more
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
match-making content producers platform management
KEY RESOURCES
platforms for niche products and services
online interaction & communities large breadth of niche segments
communities
platform breadth & reach
COST STRUCTURE
focus on match-making
DISTRIBUTION CHANNELS
online and information rich channels
REVENUE STREAMS
selling little of more
PARTNER NETWORK
KEY ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER SEGMENTS
match-making content producers platform management
KEY RESOURCES
platforms for niche products and services
online interaction & communities large breadth of niche segments
communities of interest
platform breadth & reach
focus on match-making
DISTRIBUTION CHANNELS
online and information rich channels
COST STRUCTURE
REVENUE STREAMS
platform development & maintenance
selling little of more
thanks for your attention!