The paper “ Free Business Models - Spotify Premium, the Long Tail Patterns” is an intriguing example of a business essay. The following are the main reasons Companies unbundle their lines of business. First, Companies unbundle their lines of business to Find and to retaining customers, to develop new products and services; unbundling businesses may also help Companies counter more specialized companies that could provide similar offerings more efficiently. Secondly, Companies unbundle their lines of business if their providers underperform; in an instance where a Company’ s providers underperform, the Company doesn’ t have to remove a service but the Company can simply replace that one element instead of replacing the entire plan.
The third main reason why Companies unbundle their lines of business is for business model innovation; unbundling lines of operation allows a Company to come up with new products and services. Unbundling helps a Company to focus on delivering the best results of the plan, and keep costs down. In my opinion, in the case of paying for TV channels, It would be great if you could pay just for the channels you actually use, unbundling cable channels would not make consumers materially better off.
The most likely result would be people paying about the same amount for fewer channels. The Long Tail PatternsIn my reflections, I have always asked myself the following question: if a long-tail takes a long time to succeed, why do some companies still follow this line of business? I really don’ t understand the reason for long tail in some markets, like movies, music, video-games, Books; I don’ t understand why this kind of businesses waste their time and money waiting for months to see the unexpected result, even if the results are negative, it doesn’ t mean that my business has to be shut down.
In my Google research, however, I have found some perfect example s of Companies where the long tail is quite useful. Long-tail marketing generally involves more inventory management than product promotion; in long-tail marketing, businesses hope to reach more customers and generate more total sales. One example of a business where long-tail marketing has succeeded is in the iTunes business.