strategy

Long Tail Model
Long Tail Model Jonathan Poland

The long tail refers to a business model that allows a large number of niche products or services to be sold, often through the internet. This model allows individuals or small businesses to sell products or services that were previously only available from larger, more established firms or professionals. The long tail model can create a market for products or services that appeal to a small number of consumers, but that collectively make up a large portion of the market. Because the long tail model allows for the sale of a wide range of niche products and services, it can often dominate industries by catering to a larger and more diverse group of consumers. The following are common examples.

Vacation Rentals
Markets for people to rent their homes, apartments and vacation properties. Represents a major market relative to hotels.

Knowledge
Forums, blogs and wikis that allow enthusiasts to share knowledge.

Search
Search engines are a foundational technology that allow small contributors to reach an audience. Without search, customers would need to go directly to a media outlet to get information.

Car Rentals
Vehicle sharing markets as opposed to car rental shops.

Taxis
A market for ride sharing. Competes with licensed taxis.

Design
A crowdsourced design for a company logo as opposed to hiring an advertising agency or graphic design firm.

Media
Crowdsourced media such as promotional videos for music.

Photos
A photo sharing site as a source for images as opposed to hiring a professional photographer and models.

Self-Publishing
Self-publishing companies that allow anyone to publish and distribute a book and ebook.

Ecommerce
A platform that allows individual sellers.

Auctions
An electronic marketplace for used items, art and collectables.

Freelancing
A site that connects freelancers in a variety of professions to clients.

Entertainment
A video sharing site with revenue sharing from advertising. Allows independent producers to distribute their works to compete with large entertainment companies.

Reviews
Restaurant reviews from thousands of customers as opposed to a single review from a professional food critic.

Peer-to-peer Computing
Computing platforms that use the collective resources of people’s devices as opposed to centralized cloud infrastructure.

Product Design
Crowdsourcing the design of products such as t-shirts or more complex items such as sportswear.

Contests
Contests to achieve a result such as developing a big idea in advertising.

Seed Swapping
An agricultural method of saving naturally occurring non-GMO seeds and sharing them as opposed to obtaining seeds from large biotechnology firms.

Crowdfunding
Funding a project or venture by raising money from a large number of people as an alternative to bank loans.

Word of Mouth
Communication or marketing that is spread from person to person using platforms such as social media. Provides incentives to firms to deliver a crowd-pleasing product or service.

Research
Solving problems in fields such as healthcare by asking a large number of people to answer a survey.

Computation
Solving computationally complex problems by asking users to donate computing time by installing a screen saver that activates when a device is idle. For example, the SETI@home program uses donated computing cycles to search for extraterrestrial intelligence in radio signals.

Managed Services
Managed Services Jonathan Poland

Managed services refer to a range of IT and business services that are outsourced to a third-party provider. These services are typically delivered on a subscription basis, and are designed to help organizations manage and maintain their IT infrastructure, business processes, or other operational needs.

Managed services offer a number of benefits to organizations. One of the main benefits is that they allow organizations to offload tasks and responsibilities to a third-party provider, which can help to free up time and resources to focus on core business activities. Managed services can also help to improve efficiency and productivity, as they allow organizations to access specialized expertise and resources on an as-needed basis.

Another benefit of managed services is that they can help to reduce costs. By outsourcing tasks and responsibilities to a third-party provider, organizations can avoid the need to hire and train in-house staff, and can take advantage of economies of scale. Managed services can also help to reduce the risk of IT and business disruptions, as providers typically offer proactive monitoring and maintenance services.

However, managed services can also present challenges, such as the need to carefully evaluate and select a provider, and the need to ensure that the provider is meeting the agreed-upon service level agreements. Bottom line, managed services are a range of IT and business services that are outsourced to a third-party provider on a subscription basis. They offer a number of benefits, such as the ability to free up time and resources, improve efficiency and productivity, and reduce costs. However, they can also present challenges, such as the need to carefully evaluate and select a provider. The following are common types of managed service.

Software
Applications, systems and automation that are fully managed including administration, infrastructure, security and support.

Infrastructure
Foundational services such as networks that are managed including processes such as security, capacity management and quality assurance.

Facilities
Facilities such as offices that are managed including things like security, maintenance, cleaning, kitchen services and administrative processes.

Equipment & Machines
Equipment, devices and machines that are wrapped in management services. For example, an elevator that is sold with a monitoring and maintenance service.

Business Capabilities
Business capabilities that are provided as a service including well defined performance measurements. For example, a business capability such as payroll is commonly outsourced to a managed service.

Business Processes
A business process that is completely or partially run as a managed service. For example, a lead generation and qualification process might make use of multiple managed services with the core process remaining internal.

Operations
Groups of related business processes that are outsourced as an operations function. For example, a retail company that outsources its entire supply chain management operations to a service.

Examples of Consumer Goods
Examples of Consumer Goods Jonathan Poland

Consumer goods are physical products that are purchased by individuals for their own personal use. These goods are typically tangible, meaning that they have a physical form and can be touched and seen. Consumer goods are an important part of the economy, as they meet the needs and wants of individuals, and help to improve their quality of life. There is a wide range of consumer goods available, including everything from food and clothing to electronics and home appliances. Consumer goods can be classified into different categories, such as durable goods, which are designed to last for a long time, and nondurable goods, which are designed to be used up or consumed quickly.

One of the main benefits of consumer goods is that they provide people with access to a wide range of products and services that they need or want. Consumer goods also provide employment opportunities for a wide range of people, including those who work in manufacturing, sales, and distribution. However, consumer goods can also be expensive, and people may not always be able to afford the products that they need or want. In addition, the quality of consumer goods can vary, with some products being of higher quality than others. In conclusion, consumer goods are an important part of the economy, as they help to meet the needs and wants of individual consumers. While they offer a range of benefits, they can also be expensive and the quality can vary.

Here are some examples of consumer goods:

  1. Food: Products that are consumed as part of a regular diet, such as fruits, vegetables, meat, and dairy products.
  2. Clothing: Items that are worn to cover the body, such as shirts, pants, and dresses.
  3. Electronics: Devices that use electricity to perform functions such as computing, communication, or entertainment, such as smartphones, laptops, and televisions.
  4. Home appliances: Devices that are used in the home to perform household tasks, such as washing machines, refrigerators, and vacuum cleaners.
  5. Personal care products: Products that are used for personal hygiene and grooming, such as soap, shampoo, and toothpaste.
  6. Furniture: Items that are used to furnish homes, such as tables, chairs, and beds.
  7. Toys: Items that are used for play, such as dolls, action figures, and board games.
  8. Sports equipment: Items that are used for physical activity or recreation, such as bikes, basketballs, and golf clubs.

 

Consumer Services
Consumer Services Jonathan Poland

Consumer services are services that are provided to individual consumers, rather than to businesses or organizations. These services are typically intangible, meaning that they do not have a physical form, but rather consist of expertise, knowledge, or other intangible resources. Consumer services are a vital part of the economy, as they meet the needs and wants of individuals, and help to improve their quality of life. There is a wide range of consumer services available, including everything from healthcare and education to entertainment and personal care.

One of the main benefits of consumer services is that they are typically tailored to the needs and preferences of individual consumers. This means that people can choose the services that best meet their needs and are willing to pay for them. Consumer services also provide employment opportunities for a wide range of professionals, such as doctors, teachers, and hairdressers.

However, consumer services can also be expensive, and people may not always be able to afford the services that they need. In addition, the quality of consumer services can vary, with some providers offering higher-quality services than others. In conclusion, consumer services are an important part of the economy, as they help to meet the needs and wants of individual consumers. While they offer a range of benefits, they can also be expensive and the quality can vary.

Here are some examples of consumer services:

  1. Healthcare: Services related to the diagnosis, treatment, and prevention of illness, such as doctor’s appointments, hospital stays, and prescription medications.
  2. Education: Services related to learning and personal development, such as schooling, tutoring, and university courses.
  3. Entertainment: Services that provide leisure and enjoyment, such as movies, concerts, and sporting events.
  4. Personal care: Services that help people maintain their appearance and personal hygiene, such as haircuts, massages, and manicures.
  5. Financial services: Services related to managing and investing money, such as banking, insurance, and investment advice.
  6. Transportation: Services that provide people with access to transportation, such as taxi rides, car rentals, and public transit.
  7. Home services: Services related to maintaining and improving homes, such as cleaning, landscaping, and home repair.
  8. Travel: Services that help people plan and book vacations, such as flights, hotels, and tours.

Cottage Industry
Cottage Industry Jonathan Poland

A cottage industry is a small-scale, home-based business or economic activity that is typically run by a single person or a small group of people. Cottage industries are often characterized by low levels of capital investment and the use of traditional or artisanal techniques. They often produce handmade or customized products, and may rely on local resources and raw materials.

Cottage industries have a long history, and have played an important role in many economies around the world. In some cases, cottage industries have evolved into larger, more formalized businesses, while in others they have remained small and local in nature. Examples of cottage industries can include things like knitting, woodworking, or pottery-making.

Cottage industries can offer a range of benefits, including the ability to work from home, a sense of independence and self-sufficiency, and the opportunity to create and sell unique and handmade products. However, they can also face challenges, such as limited access to markets and customers, and the need to compete with larger, more established businesses.

Here are some cottage industries:

  1. Handmade crafts: This can include things like knitting, quilting, or pottery-making.
  2. Home-based food production: This might include things like baking bread, making cheese, or preserving fruit and vegetables.
  3. Artisanal manufacturing: This could include small-scale production of things like furniture, clothing, or jewelry.
  4. Gardening or farming: Some people may run a small-scale gardening or farming operation as a cottage industry, growing produce or flowers to sell at local markets or directly to customers.
  5. Home-based services: This could include things like babysitting, pet-sitting, or providing home-based care for elderly or disabled individuals.
  6. Handyman or home repair services: Someone with skills in carpentry, plumbing, or electrical work might offer home repair or maintenance services as a cottage industry.
  7. Tutoring or teaching: Some people may offer private tutoring or teaching services, either in person or online, as a cottage industry.

Creative Services
Creative Services Jonathan Poland

Creative services refer to a range of services that involve the use of creativity and innovative thinking. These services often involve the creation of work products that require a high level of creativity, such as advertising, design, or marketing. The value of these services is often highly dependent on the talent and expertise of the individuals who provide them. Creative services can be provided by a variety of different types of professionals, such as graphic designers, copywriters, or marketing strategists. This sector of the economy is an important contributor to many industries and plays a vital role in driving innovation and creativity. The following are common examples of creative services.

Management Consulting
Executive level consulting in areas such as strategy, innovation and change management. For example, a management consultant might be brought in to determine why a firm is failing to meet a set of goals despite significant effort and spending.

Urban Planning
The design of cities. For example, a city might hire an urban planning consultant to develop a strategy to make the city more resilient to floods.

Architecture
The structural design of buildings is a creative skill as buildings are considered an art form.

Interior Design
Interior design such as a redesign for an office that aims to increase productivity and impress clients.

Lighting Design
The design of light environments such as the night architecture of a building.

Sound Design
The design of sound environments and productions such as a theatrical performance.

Landscaping
The design of outdoor environments such as a garden.

User Experience Design
The design of anything that people experience including tools and processes. For example, the design of a check-in process for a luxury hotel.

Information Architecture
The design of information to be experienced by people. For example, the layout and structure of a knowledge repository.

Game Design
The design of games and game-like physical or digital environments.

Branding
The development and improvement of brands. For example, a brand strategy for a brand that has been over-extended, damaging its value.

Advertising
Advertising such as an agency that can deliver a multi-channel campaign for clients that includes television commercials, print ads, digital ads, in-store displays and billboards.

Media
Media services such as video production or photography.

Commercial Art
Art that is constrained by requirements such as a display window at a product showroom.

Industrial Design
The design of products for mass production such as a chair.

Graphic Design
Visual design such as a logo, sign or magazine cover.

Copywriting
Writing for commercial purposes such as advertising.

Fashion Design
The design of clothing, footwear and accessories.

Events
The production of events such as a cultural event or industry conference.

What is an Agent?
What is an Agent? Jonathan Poland

An agent is a person or organization that has been granted the authority to act on behalf of another person or entity, known as the principal. Agents can specialize in various areas, such as negotiating the sale or purchase of assets, managing media relations, or providing other specialized services. In many cases, an agent is hired by the principal to represent their interests in a transaction or other situation that requires specialized skills or expertise. For example, a press agent might be responsible for managing a celebrity’s public image and interactions with the media, while a real estate agent might be hired to help a homeowner sell their property. Regardless of their specific area of expertise, agents are typically paid by the principal to act on their behalf and represent their interests.

Here are some examples of different types of agents:

  1. Real estate agent: A professional who helps buyers and sellers navigate the process of buying and selling property.
  2. Insurance agent: A person who sells insurance policies to individuals or businesses.
  3. Travel agent: A professional who helps individuals and businesses plan and book travel arrangements, such as flights, hotels, and tours.
  4. Literary agent: A person who represents authors and helps them sell their writing to publishers.
  5. Talent agent: A person who represents actors, musicians, and other creative professionals and helps them find work in the entertainment industry.
  6. Sports agent: A person who represents professional athletes and helps them negotiate contracts and other business deals.
  7. Customs agent: A government employee who is responsible for enforcing customs laws and collecting duties and taxes on imported goods.
  8. Press agent: A person who manages a celebrity’s public image and relationships with the media.

Barter
Barter Jonathan Poland

Barter is a system of exchange in which goods or services are traded for other goods or services, rather than for money. It is a form of trade that has been used by humans for thousands of years, and it is still used in some parts of the world today. One of the main benefits of barter is that it allows people to trade goods and services without the need for a common currency. This can be especially useful in situations where there is a lack of currency, such as in times of economic instability or in areas where a formal currency is not widely used.

Another benefit of barter is that it allows people to trade directly with each other, rather than going through intermediaries such as banks or other financial institutions. This can help to reduce transaction costs and make it easier for people to access the goods and services that they need.

However, barter also has its limitations. One of the main challenges is that it can be difficult to find someone who is willing to trade the goods or services that you have for the ones that you need. Additionally, barter can be inefficient, as people may need to spend a lot of time negotiating the terms of a trade, and it can be difficult to determine the value of the goods or services being traded.

In conclusion, barter is a system of exchange that has been used by humans for thousands of years, and it continues to be used in some parts of the world today. While it has its benefits, such as allowing people to trade without the need for a common currency, it also has its limitations, including the challenge of finding someone to trade with and the difficulty of determining the value of the goods or services being traded. The following are illustrative examples.

Commodities
Export firms in two different countries develop a contract to exchange 400 tons of wheat for 300 tons of soybeans without payment.

Products
Neighbors agree to exchange a boat for a motorcycle.

Services
A carpenter builds a garage for an electrician in exchange for some electrical work at the carpenter’s summer house.

Assets
The exchange of a small house in the city for 200 acres of land in the countryside.

Multilateral
A barter transaction can involve multiple parties. For example, a carpenter does work for an electrician so that the electrician will do work for a solar installer so that the solar installer will do work for the carpenter.

Hyperinflation
Barter transactions become more common in an environment of hyperinflation whereby local currency is rapidly losing its value. For example, workers at a bread factory may demand to be paid in bread as money becomes relatively worthless.

Deflationary Spiral
Severe deflation causes the value of money to increase with time. This motivates people to hoard money and can inspire barter transactions. For example, trades of used goods such as a television for a bicycle.

Markets
Two-sided markets for trading goods and services such as a digital platform for trading collectable items.

Compensated Trade
A transaction that uses money to compensate for the difference in value between two barter goods. For example, a boat for a motorcycle plus $500.

Reuse
Barter may be inspired by the ethic of reusing things to reduce the impact of production on the environment. For example, reuse enthusiasts who exchange bicycle parts at a repair cafe.

Market Fit
Market Fit Jonathan Poland

Market fit refers to the extent to which a product or service meets the needs and preferences of a target market. A product or service with strong market fit is well-suited to the needs and desires of its target audience, and is likely to be successful in the market.

There are several factors that can impact market fit, including the product or service’s features, pricing, and positioning in the market. It is important for companies to carefully research and understand the needs and preferences of their target market in order to develop products and services that have strong market fit.

There are several ways that companies can assess market fit, including conducting market research, gathering customer feedback, and analyzing sales data. By understanding the market demand for their products and the factors that contribute to their success, companies can make informed decisions about product development and marketing strategies.

In conclusion, market fit is an important consideration for companies looking to successfully bring products and services to market. By thoroughly researching and understanding the needs and preferences of their target market, companies can develop products and services that have strong market fit and are likely to be successful in the market. The following are illustrative examples.

Service
An airline with superior customer service may fulfill an underserved need if competitors have low customer satisfaction.

Digital Access
A mobile app allows customers to order a ride in a market where the tradition system for ordering a taxi was based on an ambiguous system of taxi stands.

Supply Shortfall
The only restaurant in a neighborhood that gets a reasonable number of tourists.

Lifestyle
Shifting lifestyle choices such as a growing demand for artisanal foods.

Trends
Fashion trends such as a sudden seasonal demand for a particular style of dress.

Problem Solving
Solving a pressing problem such as managed business software that removes the complexity of owning and operating your own platforms.

Pricing
An institution that provides a reputable, valuable and marketable education for low cost.

Terms
A mobile plan that offers unlimited bandwidth when all competing plans in a particular market charge for data.

Culture
The only flight from Tokyo to London that gets Japanese food right.

Usability
A car navigation system that people find a delight to use when competing systems have slow, cumbersome and poorly considered user interfaces.

Medical
Low impact shoes for people with a bad back.

Markets
Creating new two-sided markets such as an app that lets people rent out their apartment to vacationers.

Sales Objections Jonathan Poland

Sales Objections

A sales objection is a concern or hesitation that a customer has about making a purchase. Identifying and addressing these…

Motivation Jonathan Poland

Motivation

Motivation is the driving force that inspires people to take action and pursue their goals. It is an important factor…

Segregation of Duties Jonathan Poland

Segregation of Duties

Segregation of duties is a principle in internal control that aims to reduce the risk of fraud or errors by…

What is Air Gap? Jonathan Poland

What is Air Gap?

An air gap is a computer network that is physically isolated from other networks, including the internet. This isolation is…

Go-To-Market Strategy Jonathan Poland

Go-To-Market Strategy

A go-to-market strategy is a plan that outlines how a business will introduce its products or services to the market…

Business Objectives Jonathan Poland

Business Objectives

Business objectives are specific targets or goals that an organization, team, or individual strives to achieve within a certain time…

What is a Competitive Market? Jonathan Poland

What is a Competitive Market?

A competitive market is a type of market in which there are numerous buyers and sellers, and in which the…

Operations Security Jonathan Poland

Operations Security

Operations security, also known as “opsec,” is the practice of protecting sensitive information in the context of day-to-day business activities.…

Community Problems Jonathan Poland

Community Problems

Community problems are local issues that can only be effectively addressed by involving the people who live in the affected…

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Operations Plan Jonathan Poland

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