A Study on Internet Entrepreneurship Based on the Long Tail Theory - Innovative Management in Information and Production - page 218

when the unremarkable become ubiquitous; Bob Baker thinks that the long tail is
about a story: products which used to be considered to be marginalized, underground
and stand-alone now jointly occupy a market share which is sufficient to compete
with the best-selling goods.
Domestic scholars defined the long tail as a theory, such as Zhang Jinghong and
Chen Zongnan believe that the long tail theory is a theory that in the conditions
of network, electronic data management, to promote the products with the lowest
cost and to search and find products in the highest quality, by changing marginal
cost-effectiveness to affect the potential market profit margins and generate a new
exchangeable market with differentiation and heterogeneity. Some scholars do not
agree to name it the long tail theory; they often refer it as the long tail effect or long
tail economy. Wu Lun believes that long tail economy is a combination of internal
and external economies of scale, but it is not equal to the economies of scale and
may not even be economies of scale but the differences in economy or personalized
economy, creative economy, and other heterogeneous economy. Yu ( 2007 ) thinks
that the “Pareto principle” which is considered by business circle as iron law may
be broken with the rise of the Internet; 99 % of the products have the opportunity
to be sold, this is the long tail effect. Tan g an d L i ( 2009 ) believe that the long tail
should be understood as an economic phenomenon under the new economic rules.
In this paper, we agree with this view and refer the long tail as an economic
phenomenon. This economic phenomenon states that non-popular products can also
get some consumer recognition and occupy a certain market share.

2 Realization Conditions of the Long Tail Effect

Chris Anderson thinks that the six themes of the long tail era are the response, to
possible mass customization.

2.1 The Low-Cost Production Makes the Tail Profitable

In today's society, with the improvement of technology, communications, and
transport conditions, the production cost is significantly reduced.The low-cost
production businesses can still make a profit even the sales volume is small.