| As an indispensable component, small and medium enterprises (SME) play an important role in our national economy. Nevertheless, due to their small and medium size, SME always hold an awkward position in the market competition. Toppling over 80/20 Rule, Long Tail Theory points out a new strategy for SME. According to this theory, size is no longer an insurmountable gulf between large enterprises and SME. In WEB2.0 era, IT and Internet have already greatly changed the patterns of production, consumption and diffusion, and provided a good platform and environment for SME to put Long Tail Theory into practice.From SME's point of view, this article analyzes the problems emerging from the developing process of our large number of SME. Based on the literature review of Long Tail Theory, both theoretical progress and case study, at home and abroad, considering the characteristics of new economy and the status quo of circumstance outside and inside SME, the author tries to blend two strategies,Long Tail and Business Management,and make suggestions about application of Long Tail Strategy by SME from both demand side and supply side.The main point is, Long Tail Strategy not only caters for Internet-relevant enterprises, but also can be used to guide the production and management activities of firms in more traditional industries. However, there is a set of restrictions in applying Long Tail Strategy. To those who do not entirely meet these requirements, it is useful to create conditions as regards forming industry clusters utilizing specialization mechanism on one hand, and excavating the consumers' in-depth value on the other hand, so long as they pay attention to Short Head aside Long Tail, the growth prospect could be expectable.Long Tail Era has come. SME should take advantage of this theory to promote their competitiveness, break away from severe market competition in the short head or red sea, and strive for survival and development in the long tail of economy. |
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