Leveraging the long tail: Stream

14 May

I believe some of you may prefer to buy the product online than offline. It is because you have wider choices when shopping online and some products can only find in the online world. Perhaps this is because the retailers may not have enough space for all brands or low demand products. On the other hand, the online stores can stock the low demand product and broader brands with infinite space and sell it whenever you want it.

Leveraging the long tail concept refers to the advantages of being on the internet that give you the infinite shelf space, cost advantage and ability to focus on small market. With the long tail concept, Internet can make the hits to niches and offer significant market opportunities from a wider audience.

The example of the long tail strategy is Stream. Stream is focus on game entertainment. Stream offers more than 1,100 games to purchase, download and play from any computer. If you compare to the retailer such as EB games, they can offer around 100 titles and only the popular one.

Stream uses leveraging the long tail strategy since the users sign up to the page. Stream provides the wide range of self service tools for users. They allow users to manage profile and other settings to give their user the greater control. Moreover, the users can discuss or ask their peer technicians for knowledge sharing via stream forum that can be reduced the support cost.

As the products in Stream trades in the digital content and send over the internet to customer, it does not have a cost of delivery like the physical shops. Also, Stream uses consignment-style models. This means Stream pays for products only after they are sold to customer.

Furthermore, algorithmic data management uses in Stream to match supply and demand. As the numbers of products are expand. This helps customer to find a product of similar interest “customers who bought this also bought x”.

In conclusion, leveraging the long tail concept goes around the web 2.0. It is crucial to reach out the long tail not just the head. Stream has been used this pattern to give advantages to their customer over the physical shops. Stream seems to sells their products in game markets but their selling goes on further and that is how leveraging the long tail works in Stream.

Reference:
www.newfangled.com
store.streampower.com

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10 Responses to “Leveraging the long tail: Stream”

  1. empecee May 14, 2011 at 2:03 am #

    so what exactly is the niche market targeted here?

  2. wanlaya May 14, 2011 at 2:13 am #

    its a website for the one who interested in game. you might not find the game you want in traditional stores but you can find it here!

  3. empecee May 14, 2011 at 2:20 am #

    ARH!! so it is marketing pasty teenagers with a sence of nostalgia?
    😛

  4. Dean Jackson May 15, 2011 at 7:10 am #

    Although I have not personally used steam (except to download portal when they release it free on the mac), I agree that it does leverage the long tail.

    This is not however the most exciting feature of the software for me. To me, the most interesting feature about steam is that it allows a use to use the software they purchase on any machine as the software is tied to their steam account and not the computer on which they purchased it. Is this correct or have I miss understood how steam works?

    • wanlaya May 16, 2011 at 1:29 am #

      Yes you’re correct that is also the cool feature in Stream. You can play all games on any computer or redownload it with your stream account. Thanks for comment.

  5. Chen May 16, 2011 at 4:50 am #

    Ive only used steam once or twice but didnt know some of the great features. thanks for the info. that feature where u can re-download sounds great, means no more worrying bout losing installation cds etc.

  6. xxlesliexx May 16, 2011 at 4:28 pm #

    Wow. Are the games bought online on steam any cheaper from buying in retail stores? Nice example on this pattern!

    • wanlaya May 17, 2011 at 3:01 am #

      of course its cheaper than the retail stores. they also have special promotion sometime so the price is very very cheap. thanks for your comment

  7. pond May 16, 2011 at 8:46 pm #

    This an appropriate example of leverages the Long Tail to benefits the niche market. As it mentioned, this is not just only the long tail strategy,Stream also provide a wide rage of services to benefit members. Nice example of Long Tail strategy and clear explaination.

  8. Wilson May 20, 2011 at 6:35 am #

    I use Steam for a long time. I agree with your point. Steam help me connect with friend easily. It is happy to seem it develops more successful.

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