Long Tail Theory
The Long Tail Theory suggests that in a market, a large number of niche products can collectively make up a significant share of sales, even if each individual product sells in low volumes. This concept is often illustrated through the distribution of products, where a few popular items dominate sales, while many less popular items contribute to a substantial portion of total revenue.
This theory is particularly relevant in the digital age, where platforms like Amazon and Netflix can offer vast selections of products and content. By catering to diverse tastes and preferences, these platforms can profit from the cumulative sales of many niche items, rather than relying solely on a few bestsellers.