Analysis:

Blue Ocean Strategy is an innovation-centered strategy, which emphasizes finding or creating a non-competitive, brand-new market space and brand-new business opportunities, that is, creating new changes by developing new thinking.

At present, with the economic globalization and increasingly fierce competition, many companies are competing at reduced prices, forming a "bloody" Red Sea. In this case, the only way to win in the competition is not just to defeat the opponent, but to expand the boundaries of existing industries in the Red Sea, develop the undeveloped blue ocean, and form a brand-new uncompetitive market. This is the most effective strategy.

Market space is never eternal, and the blue ocean is constantly created and deepened with the evolution of time. Although in recent years, people have mostly focused on the Red Sea strategy with competitive characteristics, in this competitive era, if we want to win, we must have blue ocean thinking, find the characteristics of the market and create new market space without competitors. Moreover, we must understand that these so-called new markets are new to us, but they may have existed long ago, but we just haven't explored them.

Connotation of Long Tail Theory

1. Simply put, the so-called long tail theory means that when the places and channels for goods storage, circulation and display are wide enough, the production cost of goods drops sharply to the point where individuals can produce them, and the sales cost of goods drops sharply. Almost any product that seems to have extremely low demand before will be bought as long as it is sold. These products with low demand and sales volume occupy the same market share, which can be comparable to or even greater than mainstream products.

2. What is the long tail theory?

The book points out that the future of business and culture does not lie in the head that represents "hit" on the traditional demand curve; The long tail stands for "unpopular commodity" and is often forgotten. For example, a large bookstore can usually hold 6.5438+10,000 books, but a quarter of Amazon online bookstore's book sales come from books ranked after 6.5438+10,000. The sales proportion of these "unpopular" books is growing rapidly, and it is expected that they will occupy half of the overall book market in the future.

This means that when consumers are faced with unlimited choices, what they really want and the channels they want to obtain have undergone major changes, and a brand-new business model has emerged.

The long tail theory is everywhere? The application of the long tail theory is by no means limited to the Internet and entertainment media industries.

The traditional market curve conforms to the 80/20 iron law. In order to grab the best-selling product market that brings 80% profit, we have worked hard, but our so-called best-selling products are more and more unworthy of the name. For example, the ratings of golden TV programs have been declining for decades. If you put it in 1970, it is difficult to go to 10. In short, although we are still fascinated by blockbusters, their economic strength is not what it used to be. So, where did the capricious consumers turn? The answer is not unique. They are scattered in all directions, because the market has been divided into countless different fields. The emergence of the Internet has changed this situation, making 99% of the goods have the opportunity to be sold, and the long tail (so-called niche products) in the market curve has also turned over, becoming a new profit growth point that we can place high hopes on.