On his dynamic blog Guy Kawasaki, Apple Fellow and director of VC company Garage Technology Ventures, has put in the hours to create a cynic’s checklist for the implementation of Long Tail Ideas. And in case you still don’t know the Long Tail tale, Chris Anderson’s book of the same name speaks to “Why The Future of Business is Selling Less of More.” Navigating further into Guy’s checklist, we spot some overlap with Blue Ocean Strategy which we’ve included below.
Low-cost production. It cannot cost the company a lot to make a product that only sells a few units a year, and a few sales must satisfy any single producer, writer, artist, musician, or photographer. There are several ways to attack this problem:
You build the product after you have it sold, so you’re out of pocket for only a short time—for example, “just in time” printing of niche books.
Your suppliers produce things for you and then “consign” it to you--Apple, for example, doesn’t pay for music tracks until after it sells it.
All you have to do is distribute what’s already there. Apple doesn’t commission the creation of any music nor does Handango pay for people to develop software, ringtones, and desktop patterns. Production costs, if there were any, are long sunk
(continue reading Guy’s thoughts here)
Do these ideas seem to indicate a company ripe for success? And do they seem to reflect the principles of Blue Ocean Strategy? Well, if you answered yes and yes you are right on, because Handango, the company mentioned by Guy above, is in fact a Blue Ocean Strategy practitioner.