Tag Archives: long tail

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.