The Business Model Navigator, 2nd Edition

Chapter 28

Long Tail

Little and often fills the purse

The pattern

The Long Tail business model concentrates on selling small quantities of a very large range of products, in contrast to a ‘blockbuster’ model (WHAT?) offering large quantities of a small range. Although Long Tail offers narrower margins and lower volume sales of individual products, profits are significant over the wide range sold in the long run (VALUE?). The Long Tail pattern disregards the classic 80–20 rule, whereby a company generally earns 80 per cent of its profits from the sale of just 20 per cent of its products. With this model, mass and niche products can generate ...