Amazon and Netflix

The main basis for a company’s decision to deploy long tail strategy is to sell a small proportion of its products, which represents the wide variety of products it avails to consumers. This notion, which was first established by Clay Shirky and Chris Anderson, has well been taken up by internet-based entities to boost sales. For instance, Amazon is a company, which has utilized the benefits of the model to posts increased sales. Unlike, Netflix, Amazon has cut competition in the movie-renting market by offering its prime members (members who subscribe for $79 annual fee for 2-day based shipping) free streaming movies as well as television shows. This move is considered a direct tackle on Netflix operations, which constitute renting a wide selection of hard-to-find movies to its consumer base.

In order to cut unnecessary expenses, Amazon has resorted to long tail strategy when licensing its streams of movies since it is cheap to obtain as compared to blockbusters. In its efforts to maximize the benefits of long tail model, Amazon has provided inexpensive video offers to both its clientele and potential consumers. In such manner the service is utilized to target potential customers who are unwilling to pay Netflix monthly video subscriptions on the basis that they under-consume the product. This notion catapults Amazon’s sale revenue on a mere basis that it avails a hard-to ignore service which is accessible and cheap altogether.

To sum up, it is safe to postulate that both Amazon and Netflix utilize the long tail business model to tap new markets. The methodology, which is put forward to increase this notion, is when entities embark on both providing inexpensive mode of purchases to its clientele as well as taking a risk to experiment with easier untried manner of purchases. Unlike Netflix, Amazon is perceived effective in deploying both of the aforementioned strategies specifically when it offers cheap video streaming to a wider customer base. Also, it is safe to indicate that the strategy attracts lots of wave disruptions with internet-based companies like Netflix and Amazon competing for significant proportion in the untapped market.