The New Marketplace - “Selling Less of More“ -Chris Anderson

1. long tail
business models
reflections for business
strategists!

2. a concept coined by
Chris Anderson in…

4. it’s about selling less of
more…

5. focusing on a small
number of products
with large volume!
sales
number of products

6. focusing on a large
number of products
with low volume!
sales
number of products

7. what does this
mean for
business models? ?

8. example: music
business

10. focusing on a small
number of products
with large volume!
sales
number of products

11. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
KEY DISTRIBUTION
RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS

12. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
super-star
!
artists & hits
KEY DISTRIBUTION
RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS

13. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
super-star mass
!
artists & hits market!
KEY DISTRIBUTION
RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS

14. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
super-star mass
!
artists & hits market!
KEY DISTRIBUTION
RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS
huge revenu
es
from few
artists!

15. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
super-star mass
!
artists & hits market!
KEY DISTRIBUTION
RESOURCES CHANNELS
retail
outlets!
!
radio & TV
COST STRUCTURE REVENUE STREAMS
huge revenu
es
from few
artists!

16. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
finding
talent!
super-star mass
!
artists & hits market!
KEY DISTRIBUTION
RESOURCES CHANNELS
retail
outlets!
!
radio & TV
COST STRUCTURE REVENUE STREAMS
huge revenu
es
from few
artists!

17. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
finding
talent!
marketing! super-star mass
!
artists & hits market!
KEY DISTRIBUTION
RESOURCES CHANNELS
retail
outlets!
!
radio & TV
COST STRUCTURE REVENUE STREAMS
huge revenu
es
from few
artists!

18. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
finding
talent!
marketing! super-star mass
!
artists & hits market!
KEY DISTRIBUTION
RESOURCES CHANNELS
retail
outlets!
protected
content! !
radio & TV
COST STRUCTURE REVENUE STREAMS
huge revenu
es
from few
artists!

19. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
finding
talent!
marketing! super-star mass
!
artists & hits
distribution market!
channel! KEY DISTRIBUTION
RESOURCES CHANNELS
retail
outlets!
protected
content! !
radio & TV
COST STRUCTURE REVENUE STREAMS
huge revenu
es
from few
artists!

20. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
finding
talent!
marketing! super-star mass
!
artists & hits
distribution market!
channel! KEY DISTRIBUTION
RESOURCES CHANNELS
retail
outlets!
protected
content! !
radio & TV
COST STRUCTURE REVENUE STREAMS
talent huge revenu
es
“production”
! marketing! from few
artists!

21. compare that to…

23. focusing on a large
number of products
with low volume!
sales
number of products

24. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
KEY DISTRIBUTION
RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS

25. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
platform for
musicians &
fans/buyers!
KEY DISTRIBUTION
RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS

26. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
platform for
musicians &
fans/buyers!
niche
KEY DISTRIBUTION segments!
RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS

27. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
niche
platform for segments!
musicians &
fans/buyers!
niche
KEY DISTRIBUTION segments!
RESOURCES CHANNELS
niche
segments!
COST STRUCTURE REVENUE STREAMS

28. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
niche
platform for segments!
musicians &
fans/buyers!
niche
KEY DISTRIBUTION segments!
RESOURCES CHANNELS
match-
making with
taste! niche
segments!
COST STRUCTURE REVENUE STREAMS

29. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
niche
platform for segments!
musicians &
fans/buyers!
niche
KEY DISTRIBUTION segments!
RESOURCES CHANNELS
match-
making with
taste! niche
segments!
COST STRUCTURE REVENUE STREAMS
music
subscription
service!

30. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
niche
platform for segments!
musicians &
fans/buyers!
niche
KEY DISTRIBUTION segments!
RESOURCES CHANNELS
match-
making with
taste! niche
segments!
COST STRUCTURE REVENUE STREAMS
small revenu music
es
from many subscription
artists! service!

31. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
niche
platform for segments!
musicians &
fans/buyers!
niche
KEY DISTRIBUTION segments!
RESOURCES CHANNELS
match-
making with
taste! online! niche
segments!
COST STRUCTURE REVENUE STREAMS
small revenu music
es
from many subscription
artists! service!

32. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
ies! niche
platform for communit segments!
musicians &
fans/buyers!
niche
KEY DISTRIBUTION segments!
RESOURCES CHANNELS
match-
making with
taste! online! niche
segments!
COST STRUCTURE REVENUE STREAMS
small revenu music
es
from many subscription
artists! service!

33. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
ies! niche
platform for communit segments!
musicians &
fans/buyers!
niche
KEY DISTRIBUTION segments!
RESOURCES CHANNELS
match-
making with
breadth of taste! online! niche
platform! segments!
COST STRUCTURE REVENUE STREAMS
small revenu music
es
from many subscription
artists! service!

34. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
ies! niche
platform platform for communit segments!
management! musicians &
fans/buyers!
niche
KEY DISTRIBUTION segments!
RESOURCES CHANNELS
match-
making with
breadth of taste! online! niche
platform! segments!
COST STRUCTURE REVENUE STREAMS
small revenu music
es
from many subscription
artists! service!

35. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
ies! niche
platform platform for communit segments!
management! musicians &
fans/buyers!
content niche
producers! KEY DISTRIBUTION segments!
RESOURCES CHANNELS
match-
making with
breadth of taste! online! niche
platform! segments!
COST STRUCTURE REVENUE STREAMS
small revenu music
es
from many subscription
artists! service!

36. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
ies! niche
platform platform for communit segments!
management! musicians &
fans/buyers!
content niche
producers! KEY DISTRIBUTION segments!
RESOURCES CHANNELS
match-
making with
breadth of taste! online! niche
platform! segments!
COST STRUCTURE REVENUE STREAMS
small revenu music
platform es
maintenan from many subscription
ce! artists! service!

37. we moved from a…

38. marketing &
distribution business
for stars!

39. to an..

40. enabling and
match-making
business for new
& niche talent!

41. so this is how a long tail
business model looks…

42. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
platforms for
niche products
and services
large breadth
KEY DISTRIBUTION of niche
RESOURCES CHANNELS segments
focus on
match-making
COST STRUCTURE REVENUE STREAMS

43. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
platforms for
niche products
and services
large breadth
KEY DISTRIBUTION of niche
RESOURCES CHANNELS segments
focus on
match-making
COST STRUCTURE REVENUE STREAMS
selling little
of more

44. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
online
platforms for interaction &
communities
niche products
and services
large breadth
KEY DISTRIBUTION of niche
RESOURCES CHANNELS segments
focus on
match-making online and
information rich
channels
COST STRUCTURE REVENUE STREAMS
selling little
of more

45. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
match-making online
platforms for interaction &
platform communities
management niche products
and services
large breadth
KEY DISTRIBUTION of niche
RESOURCES CHANNELS segments
focus on
platform match-making online and
information rich
breadth & channels
reach
COST STRUCTURE REVENUE STREAMS
selling little
of more

46. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
match-making online
platforms for interaction &
content platform communities
producers management niche products
and services
large breadth
KEY DISTRIBUTION of niche
RESOURCES CHANNELS segments
communities focus on
platform match-making online and
information rich
breadth & channels
reach
COST STRUCTURE REVENUE STREAMS
selling little
of more

47. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
match-making online
platforms for interaction &
content platform communities
producers management niche products
and services
large breadth
KEY DISTRIBUTION of niche
RESOURCES CHANNELS segments
communities of focus on
interest platform match-making online and
information rich
breadth & channels
reach
COST STRUCTURE REVENUE STREAMS
platform development selling little
& maintenance of more

48. thanks for
your attention!

49. check out my blog for more:
http://business-model-design.blogspot.com

50. or contact me for a
conference or workshop
engagement
alex@businessmodeldesign.com