The Applied Research Of Long Tail Theory In The Market Innovation For Smes In The Internet Of Things Industry

Innovation is an eternal topic, especially for SMEs that are full of energy and innovativespirit. However, due to the scarcity of capital, technology, human resources and otherconditions, SMEs carried out technology innovation is often undertaking high risk of failure.The capability of market innovation has not been taken seriously. In fact, the marketinnovation of SMEs can help to built the basis for survival and development. Under the severesituation of global economy, only after solving the problem of existence can they strive forfurther development.Anderson sketched out for us those beautiful long tail curves, and the world havefocused on the long-tail which has been concealing behind the scenes. Undoubtedly, it’s aninnovative and exciting ideas. However, in the case of Chinese national conditions, SMEs andmanufacturing companies have occupied an important position in the national economy. So inthis area, the applicability of the Long Tail Theory requires further testing and examining.Based on the review and comment of theoretical research, this article studied thepractical significance and feasibility of SMEs’ market innovative in the perspective of LongTail Theory. Then, a preliminary exploration was conducted on the localization issues ofLong Tail Theory, through a case study of SME in the Internet of Things industry, to providereference and inspiration for SMEs practice market innovative: The Long Tail Theoryemphasizes on the value of the niche market composed of numerous "micro user”, It hasimportant practical significance for SMEs’ market innovation, therefore the companies shouldapply the theory in a flexible way to increase market innovation capability and establishcompetitive advantage.