Amazon and Netflix get it do you?
When it comes to the Long Tail of Economics why is it only a few companies like Amazon and Netflix really get it? While the term was coined in 2004 by the editor of Wired it still is, in my opinion, really not understood by most business owners. I think the real reason is that few know about it and less know about how to actually implement the concept. However, I think for those who do understand it the opportunity to seperate from the rest of the pack is obvious. Just look and what Amazon and Netflix have done by quietly using the principal. Look for more companies to figure it out in 2007 and beyond and actually start to use it to gain a competitive advantage. The opportunity seems rather easy but the difficulty lies in the actual execution of the warehousing and the distribution of the products. There are certain niches that could lend themselves to easy distribution such as digitally downloaded book’s, CD’s and DVD’s. It seems that Amazon and Netflix have made serious inroads into those categories but for the person who can think outside the box there are no doubt many opportunities.
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