Twenty years ago if you provided someone with horrible service, it may take weeks or even months for the word-of-mouth message to get out to 15-20 potential customers. Today, with social media, thousands of potential customers can learn about horrible service within hours, minutes or even seconds after it happens.
Social media can work to a CEO's advantage. Someone with a great product in a small town in the middle of nowhere can compete in the world marketplace. In 1962, Sam Walton changed the face of retailing with Wal-Mart. As we speak, Amazon is again changing the face of retail with on-line buying.
Companies whose marketing and sales departments are not using the Internet and social media for communication may have the same fate that the dime stores had when Wal-Mart came onto the scene.
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