Long-tail-markets

General description:

The idea of long tail markets describes how information technology turns mass markets into an endless number of market niches. Using IT companies can offer much broader variety than brick-and-mortar stores. This is mainly due to the fact, that when the incremental costs of making everything available to anyone are low enough, companies can offer massive variety instead of just pushing the latest blockbuster.

Subsequently, the insight from the long tail concept is, that companies do not have to compete on blockbuster products only. Firms can successfully exploit the large number of customers with niche needs, as long as the cost of adding more variety can be kept low. 

References:

Anderson, C. (2006). The Long Tail: Why the Future of Business Is Selling Less of More. New York: Hyperion.