Big Hits

Lee Gomes continues the discussion around the head (hits) and the long tail:

As companies watch the Web grow, and hear promises of greatly expanded niche sales, it’s tempting for them to expand inventory to get in on the supposed land rush.

But Matthew P. Reilly, with George Group Consulting of Dallas, says doing so could be a “recipe for disaster” at companies that make tangible, as opposed to purely digital, products — if only because of the inevitable increase in execution risks they face in expanding their inventories. “The iTunes model doesn’t work for most companies,” he adds.

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