I collect what I refer to as “idea books.” These are books where the author expands on a concept that provides a unique perspective on an issue or problem that many people are trying to solve. I do this because these books usually receive a warm reception, often hitting best-seller lists before eventually fading into obscurity. I collect them because I want to remember their ideas, as they often have applications in various other areas, markets, and aspects of business that the author may not have initially considered. When I am stuck, I revisit these titles, recalling the core concepts and asking myself if these ideas could solve the problem I am currently facing. This method has proven useful to me more than a few times. One of these books is “The Long Tail” by Chris Anderson, the current CEO of 3D Robotics published in 2006.
The Long Tail: A Book That Stands Out
This book caught my attention because I often noticed that in business discussions, many of my colleagues and leaders were always focused on how to gain the market-dominating position in the category of what “everyone is buying.” I would often quietly think to myself, is that such a good idea? What hope would we have, just starting out, to take on much larger, more experienced firms for their position and the premier buying behavior in our industry? Isn’t this what everyone else is attempting? Why are we so special? I started to seriously contemplate the market size whenever people would throw around astronomical numbers like, “This is a $500 billion business,” or, “It will be a $1 trillion business in the next few years.” I kept thinking, why are we so bent on being #1 in the biggest industry? There is so much out there, so many opportunities that would be easier to pursue and less costly.
The Concept of The Long Tail
The Long Tail concept suggests that there are many niche areas that, while not the largest, still attract considerable market traction. In fact, there are usually hundreds of such niches in any given area. The economy has become so vast that any one of these niches can provide a substantial sales funnel if you achieve a strong presence and value proposition. Chris Anderson’s idea is that you can gain significant success by targeting a large number of niche markets instead of exhausting your resources trying to crack the mainstream market. He used the examples of Amazon, Apple, and Yahoo, which initially pursued larger niche plays before evolving into market-dominant standards. Think about it: Did Amazon become what it is by taking on Walmart directly, or did it succeed by tapping into hundreds of niche markets?
Applying The Long Tail to Smaller Markets
However, my concern isn’t with Amazon or any of the big names. I’m more interested in the market I am trying to pursue, which is significantly smaller than retail B2C. Nevertheless, I believe the Long Tail concept applies equally here. Every industry has trends that guide a significant amount of buying behavior. Chasing the #1 position in the #1 current trend might seem attractive and exciting, but it is probably not the best strategy. Instead, your success is more likely if you create an appeal to a variety of small trends and niche markets. This approach increases your chances of gaining a dominant position and is far more cost-effective.
Watch the Herd
A sage businessperson once told me to always watch the herd. When they start to head in a singular, pronounced direction, look for the few outliers moving differently. Follow them—they are often the best targets or will lead you to a more favorable location. I keep this in mind whenever I see large trends occurring. Instead of going where everyone else is going, I watch the herd and, in this case, focus on the long tail of stragglers.
