Showing posts with label Customer Service. Show all posts
Showing posts with label Customer Service. Show all posts

Tuesday, September 4, 2012

Apple vs Samsung - Ethics

In the last two postings, Samsung has regretfully been a topic about poor Customer Service. The court decision in California upheld Apple's case about copying, indicating additional possible company culture issues? All of this is not a good use of company money by fighting in court (which directly affects profitability and brand image),....but it seems to be part of our litigious nature. What ever happened to the hand shake and person's word being their bond?

Sadly, not for many years now.

Ethics seems to stem from parental values, country values, educational reinforcement or lack there of, core values espoused by the company and reiterated/communicated in employee handbooks and demonstrated over many years, Leadership, and Senior Management values.

Do you agree?



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Saturday, August 25, 2012

Another Customer Service Issue for Samsung? Is it Endemic?


In my earlier blog, a recent experience with Samsung in the Philippines was highlighted. In fact, after several months in the Philippines, I never received an e-mail or text message from them about the status of the product of interest. To my knowledge the Galaxy Y Pro, Duo Sim has still not been launched there or in the US.

In a recent article in the New York Times, another poor to no Customer Service experience was high lighted (attached below as well as the link). Maybe, this is a more endemic problem going back to the culture of the company? It seems to go deeper than just to one or two people.

If you do a Google search, the two top sites to check out about Samsung customer service brings up:

Samsung Customer Service - Customer Service Score Board

In this survey (the above link) they ranked #344 out of 555 companies. Pretty poor to say the least.

The second site was Amazon's and it appears to be even worse. Many of these issues, at Amazon, were concerning Large Screen TV's and customer service related to them.

Amazon's Customer Service Discussions = HORRIBLE

Sadly, it seems that Samsung has a lot of work to address in the Customer Service area. This sure will not help their new product launches, or the recent court ruling between Apple and Samsung Jury Court Case in San Jose, CA where they were fined $ 1.05 Billion (Apple did not violate any Samsung patents). Apple Wins Big in Patent Case


It seems that they are lacking training, and core values that support a culture of good Customer Service.

While the stock price has doubled in a year and a half, the question is how much more growth could they have realized without these negative customer service (CS) reports. In the Amazon Discussions (link is above) there were a number of references to people not buying a Samsung product or being aware of the problems and "hoping" that they were "lucky" not to have problems that would necessitate the need to contact customer service. If this trend continues in CS, then the stock price and valuation, and their sales may have more than a few rough spots in the coming months and years.

The Haggler

A Printer Freezes Up, and the Maker Does, Too

Christoph Hitz
Q. In September 2010, I bought a Samsung all-in-one laser printer. It performed well until early 2012, when Samsung changed something in its toner cartridges. The cartridges have the same name and product number, but they no longer work with my printer. I realized this after buying and returning several Samsung-brand toner cartridges, all of which produced paper-feed and other problems.
I called Samsung support, and a rep told me that I could not use the new cartridges, and that, because my printer was beyond the one-year warranty period, a technician would have to come to my office, at my expense, to update the printer’s firmware. The charge for that visit, I was told, would probably cost as much as a new printer. In other words, Samsung made a change, without telling me or other customers about the change, that instantly made a relatively new printer obsolete and basically unusable.
Just as a comparison, the printer that was replaced by the Samsung was a Hewlett-Packard laser printer that I bought in 1995 that finally gave up the ghost after 15 years of use and many, many toner cartridges.
This seems like a case of planned obsolescence designed to enrich Samsung, does it not? Jon Showstack
Kentfield, Calif.
A. Let us stipulate at the outset that this is a strange case. The strange part is that Mr. Showstack unquestionably has the problem he describes — as we will later see, Samsung sends out a technician and confirms as much. But if the company actually manufactured lots of cartridges that did not work with printers of such recent vintage, you would expect a lot of noise on the Internet’s many complaint Web sites.
Instead, there is a little bit of noise, on sites like CNet. Not exactly an outpouring of rage.
When the Haggler wrote to Samsung, a woman named Rachel Quinlan, who works for the public relations firm Weber Shandwick, sent an e-mail that she said should be attributed to a “spokesperson” for the company. She declined to name that person.
Really? A spokesperson — a person who speaks for a living — who wants to be anonymous? Not only does this sound ridiculous, it also makes Samsung seem tin-eared. Actually, that is unfair to tin, which is far more supple than Samsung is in this circumstance. What consumers and the Haggler want when products break is some sense that human beings are trying to fix them. (Note to corporations: the anonymous spokesman is a dreadful idea.)
“We are sorry to hear of the problem described by Mr. Showstack and have investigated his concerns,” the person wrote. “Samsung printers work with all cartridges except counterfeit or gray market cartridges. To the best of our knowledge, the problem described by Mr. Showstack is an anomaly; and we have received no similar complaints from other customers on the referenced model. We have since spoken to Mr. Showstack and offered a courtesy on-site repair, which he has accepted.”
The part about counterfeit and gray market cartridges strongly implies that the problem here might be Mr. Showstack’s reliance on non-Samsung cartridges. But Mr. Showstack sent photographs of the cartridges and the boxes they came in, and they sure look like Samsung’s own. The Haggler forwarded those photos to Ms. Quinlan. She did not comment. Nor did the anonymous spokesperson.
As promised, Samsung sent a technician to Mr. Showstack’s office. It did not go well. The printer did not work with a new cartridge brought by the technician.
Ms. Quinlan then sent another e-mail from the anonymous spokesperson repeating that Mr. Showstack’s issue appeared to be an anomaly. And further: “Nothing indicates that there is a general compatibility problem with this printer model and replacement cartridges. Mr. Showstack has accepted our offer of an exchange unit so that we can bring his printer and cartridge to our labs and conduct tests to investigate the problem.”
The Haggler detects a lawyerly quality to the wording here. By saying that there is no reason to think there is a compatibility problem with this printer model and new cartridges, an obvious question is raised: What about other models?
Further, in trying to look into the problem himself, Mr. Showstack says he heard that Samsung had printed an internal bulletin stating that there is indeed a compatibility problem with the printer and cartridges he’s been using.
So the Haggler wrote to Ms. Quinlan: What about other models of Samsung printers? Do they have a compatibility problem? And is it true that Samsung has published an internal bulletin on this subject, suggesting that this is a known problem?
Here is Ms. Quinlan’s response, in its entirety: “We have no further information to share.”
Signoffs don’t get more Nixonian, do they? A technician did return to Mr. Showstack’s office and traded his faulty printer for a new one. The Haggler applauds that move, but was confounded a few days later when Ms. Quinlan wrote to say that Samsung’s tests had found that the root of Mr. Showstack’s problem was a faulty cartridge. Huh? A bunch of different cartridges had failed, not just one. 
When the Haggler said how nonsensical this explanation was, Ms. Quinlan replied with this: “At this point we have nothing more to share.” 
Less than illuminating, to say the least. But a fitting end to Samsung’s ham-handed approach to public relations. 

Monday, June 25, 2012

Managing Expectations and Marketing - Samsung

It's interesting that Samsung share values have dropped their market capitalization by 4.2% on Monday, as announced in press releases in the last two days. Of course, the World markets are down and with the problems confronted by Europe at the moment, demand may be down.

However, marketing might also be a major contributor. Why? Well from personal observations, they have not done a good job of managing and meeting expectations on some of their products.

A case in point is the Galaxy Y Pro Duo-Sim. In the Philippines, they have been talking about launching this product since the beginning of January, and it is yet to be released. They appear to have released it in India, but so far that seems to be the only market. In successive months, when asked in their stores as to when this product will be released, it is the evasive "within the next two months." We are now at the end of June, 2012.

Last week Samsung launched the Galaxy S III in the US and earlier in other markets. So now, will people who want a Duo-Sim, wait for this Duo-Sim version with a keyboard or buy the older processor and older features from the Y Pro Duo? This looks like a mess from a marketing and product positioning point of view.

Even a visit to Samsung's Corporate Offices last Friday, and asking to speak with someone about when the Y Pro Duo will be released, access was not granted to see anyone in their offices. Only a person coming through the lobby from Samsung, took my business card. "They will get back in response to your question."

So, three business days have elapsed and still no word. Where is the market positioning? Where is the customer service in addressing questions? 

Maybe we should be assured by J.K. Shin's (President for Samsung's Mobile Business) upbeat announcements, but if you compare these two launches: Samsung vs Apple's iPhone 4S....is there any comparison?

It seems Samsung has some work to do, regardless of whether the Galaxy S III is a success or not, it doesn't speak highly of how this company manages it's high visibility business. Maybe they need some marketing and visioning exercises.

Recent pre-launch reports on the iPhone 5 indicates that the Galaxy S III optimism might be a bit premature as it will be good competitive product.

This isn't going to help the mobile division either:

U.S. Judge Orders Halt to Samsung Sales of Galaxy Tab

What do you think?

Samsung Shares Fall on Lowered Estimates - WSJ

Monday, March 12, 2012

Customer Service and The Wait-Time Misery Index

Recently there was an interesting article in the WSJ about new innovative ways companies are using by improving customer service and raise customer satisfaction for their products and company. Nothing is worse than non-performance or having to wait around for hours.

Not only does waiting increase stress, but creates a bad impression with clients. Many companies do not even provide 4 hour windows, but 8 hour windows, which kills the whole day. The longer in the day that service is finally provided, the less satisfaction a customer generally has.

Maybe some people of have heard of the Wait-Time Misery Index, but if not, it is a useful definition for measuring potential customer satisfaction. The greater the misery, the less customer satisfaction there will be.

The best adage is under promise and over deliver!

What new ways can you create to help reduce this index for your company? What change management techniques can be employed? How much do you communicate the need for great customer service and what metrics do you have in place to manage it and improve it? How can technology and IT, social media, visioning exercises, and strategic planning help to improve performance around this index? 

Have you, your C-Suite and Marketing personnel given thought to this? If so, how effective have you been? If not, why not?

(Link to the article is at the end.)

The Wait-Time Misery Index

Why Do Deliveries Trap You at Home For Hours; Strategies to Speed Things Up


Would you wait around if your friend was four hours late for dinner? No, but your cable company thinks this is a reasonable window of time to wait for service.
Now some companies are whittling down the wait window to two hours and trying to improve communication with customers. Some send texts with arrival updates while others reveal online where people rank in the day's delivery queue. The thinking: people, trapped in the house waiting for something to be delivered or installed or repaired, will feel less powerless if they know what to expect.
Everyone hates waiting for the phone company to come connect service or for a mattress to be delivered. Ray Smith on Lunch Break looks at which companies are innovating in this area and what effect waiting has on our sanity.
More than 50% of adults used a sick day or vacation day to wait at home for a service or delivery, according to a 2011 survey of more than 1,000 people by TOA Technologies, a Beachwood, Ohio-based firm that works with companies to reduce customer wait times. More than 25% of people surveyed lost wages while waiting.

People often become more stressed by the uncertainty, says Richard Wurtman, a neuropharmacologist and distinguished professor emeritus at the Massachusetts Institute of Technology. "The underlying personality will determine the extent to which you are vulnerable to stress induced from waiting."
Shaving two hours is a big leap, companies say, because so many factors affect delivery from traffic to calculating the time a repair or installation will actually take.

General Electric began experimenting with moving from four-hour windows to two-hour windows last year for its appliance deliveries in the Midwest. UPS late last year launched a program called My Choice which, for a $40 fee, offers customers a two-hour window delivery option. Use of the service has been strong, UPS says.

FreshDirect, a grocery-delivery service based in New York, offers two-hour wait windows. Less than a year ago, it began giving people $2 discounts on its usual $5.95 delivery fee to choose a "green" time slot—a window in which the company knows it has trucks in the customer's neighborhood. It is marketed as an eco-friendly innovation, but it also has the effect of grouping deliveries for more efficiency.

Linda Peterson, an interior designer from Atlanta, says she has resorted to paying more for an appliance-repair company called Appliance Doctor that guarantees two-hour windows, even though it costs at least 25% more, she says, than if she called the manufacturers of the appliances or other repair services.

"I didn't want to pay the premium, but I became so frustrated and being asked to wait for more than two hours was exasperating," she says. She finds even two hours hard to bear. In August, while waiting for a repairman, she began ironing linens to take her mind off the time. He arrived close to the end of the window and the work took awhile. "It was probably 50 napkins, four or five tablecloths easily," she says.

Calling during the wait window to inquire about the status of a shipment or delivery generally is not worth your time, companies say. That's because a customer will likely be calling the retailer, but usually the delivery is handled by a separate delivery company.

Service visits can be a different story. Bill Kula, a spokesman for Verizon, says usually that kind of inquiry wouldn't make a difference. That said, if a customer calls near the end of a promised window, perhaps 30 minutes before the time is up, it could be helpful. Verizon could see if there is a technician nearby who could reach the customer ahead of the scheduled technician, Mr. Kula says.

To make deliveries within a two-hour time slot, more companies are investing in software that helps determine the most efficient route The technology can shave time off trips by taking into account speed limits, for example, and estimating how long a stop will take based on service type.

"In the not too distant future, companies will be able to tighten that window to one hour," says Satish Jindel, president of SJ Consulting Group, a Sewickley, Pa., transportation and logistics consulting firm.
"I see companies using the two-hour window as a significant marketing thing," says Bruce Champeau, Room & Board chief operating officer. The furniture retailer has had a two-hour window in effect since the mid-1990s. "It's a matter of respecting the customer's time," says Mr. Champeau.

Room & Board uses scheduling software that factors in variables from traffic routes, including roadwork detours, to how long furniture assembly might take. Employees make additional updates and adjustments accordingly.

A small delivery window can give a company a leg up on rivals. With the far and fervent reach of social media, a very good or very bad delivery experience can go viral. Increasingly shoppers are broadcasting their anger—and naming company names—on customer review sites like Yelp, and on Facebook and Twitter. In the TOA Technologies survey, 16% of respondents said they post complaints online.

When it comes to waiting, a maddening factor is often the lack of information. Is the company on its way? More companies are trying to give customers status reports during the appointment window. Some businesses believe this reduces customer stress.

This is what New York's Metropolitan Transportation Authority found after it began installing digital clocks to display the number of minutes before the next subway train would arrive on the platform. So far, 209 of its 468 stations have the clocks.

"It's the 21st century," says MTA spokesman Kevin Ortiz. "There are expectations that real-time information be available to customers."

3PD Inc., of Marietta, Ga., which hires local carriers on behalf of large national retailers to handle the final leg—or what the industry calls "the last mile"—of a delivery, plans to add a similar style of communication for customers later this year. Using an app, 3PD's customers will be able to look up how far away a delivery is from arriving, says Will O'Shea, chief sales and marketing officer.

Some enterprising small concierge companies have emerged in recent years to do the waiting for you in your home for a fee. Some charge around $35 an hour.


When Victoria Kingscott's cable went on the fritz, the 25-year-old senior analyst at a financial services firm in New York says Time Warner Cable told her she couldn't get a Saturday appointment for three weeks. She couldn't take off work during the week, so she booked a 9 a.m. to 1 p.m. appointment for a Saturday last August and waited. When the big day came, she waited some more.

At noon, she became antsy. She called and was assured a technician would arrive within the hour. At 1 p.m. she called again. Apologies were offered. "I said 'this is unacceptable. It's a Saturday. I have things to do.'" She was given a second four-hour appointment window and told she was "next."

More hours of waiting, more calls. At one point Ms. Kingscott was erroneously told the technician was at her home. He was not. Finally, the technician showed up around 4 p.m. "He didn't really say he was sorry or offer any kind of explanation," she says.

"Clearly that is not an optimal customer service experience," says Alex Dudley, a Time Warner Cable spokesman. "The overwhelming majority of our installations go well."

Monday, December 5, 2011

Keys to Customer Loyalty Drivers and the Need for Sales People Who Deliver Value

In an earlier blog posting  (Different Selling Techniques - Challengers vs Relationship Builders, vs Lone Wolves vs Hard Workers vs Reactive Problem Solvers ), it was identified that "Challenger" Sales people were more successful than "Relationship" Sales People and other types of Sales people and customer service.

Obviously, a reasonable relationship needs to be maintained with a client, because otherwise, anything that the Sales Person may present to the client will be dismissed or not considered, or at most....the client will not allow a Sales Person to even meet with them to hear what they have to say. Given today's market place, just getting in the door to decision makers on any level, is much more challenging given the time constraints in heavily over worked and matrixed buying decision makers.

The context of the "Relationship Manager", however, is a person who builds a good rapport with the client but that is about all. This type person may answer questions about the product/service and help in simplified ways, but little more is provided. The needs by purchasing, or the customer, has become much more complex and as a result, more is being expected by a supplier than in the past.

Alternatively, in certain cases, the product/service may be viewed as a commodity, in which case the buying decision is driven mostly by price.

In recent research from the Sales Executive Council, this research has determined that the customer driver for loyalty for a supplier comes largely from the experienced Sales Person and amounts to a 53% loyalty influence. These Sales People demonstrate and provide significantly more support to the client by giving:
1) a unique value proposition(s),
2) navigating alternatives for the client,
3) avoiding landmines (how to use the product without problem(s))
4) demonstrating and showing a better understanding in how to use the products in unique or unusual way(s),
5) an easy methodology to buy from, and
6) the supplier has widespread support within the organization (i.e. depth of penetration at the account) on multiple levels.

In comparison, the other factors like: Company and Brand (19%), Product and Service Delivery (19%) and Value-to-Price Ratio (9%), were significantly lower in influence.



So the key to developing a strong and lasting relationship with the client is to demonstrate ways to use the product and service in ways that may not be immediately apparent to the client, or by highlighting the product in new and maybe more complex ways. However, it is also always better to penetrate the client on multiple levels than with just the single apparent buying decision person(s). While none of this is overly surprising, it it is helpful to refresh how to better serve the client by gaining their support and loyalty.

Building and developing strong Sales Teams along these lines will most likely be keys to success in the present, more complex and global World marketplace.

Sunday, November 13, 2011

Social Media's Banging on Marketing's Door

In the past 3 years social media has fast become a required part of a company's marketing and strategic plan(s). Many of us are trying to determine how to effectively use it, reaching the right audiences with the right messages while helping to promote our products and services while also giving the customer and potential customer what they need, when they need it. This impacts sales, customer service, supply, our methodology of communication, and essentially involves the entire company.

The complexity of these interactions can be seen from the graphic (Customer's Preferences and Behaviors) taken from Accenture's recent research, who's link can be found below the graphic.

 Consumer's Changing Preferences and Behaviors

Taking social media and networking into consideration is critical, because either you lead, or follow your competition. Getting to markets  and understanding how to be use these channels, sooner rather later, can spell success or failure. The World is an oyster, but it can also be a labyrinth of dead-ends and sunken costs (in time, ineffective marketing methods and messaging). Good luck!

If you are interested, a portion of a part of the article is reposted here and the link is below this posting:

"The evolution of social media and other Web 2.0 tools is having a significant impact on both how consumers interact with companies and the level of control such companies have over the sales, marketing and service of their products. (Although it is difficult to find consensus on what exactly is meant by “social media,” for the purpose of our discussion, the term refers to Internet and mobile channels that enable users both to view and create content and to share that content with others.)
Today, consumers make their purchases either via retailers’ or manufacturers’ sites or retailers’ physical stores. However, as social networking and other Web 2.0 tools have exploded in popularity—consumers have many new sources of product information and buying advice, as well as answers to usage and technical questions about the products they have purchased.
In this new world, companies have an opportunity or a threat, depending on how they adapt marketing, sales and service of their own products to a new consumer ecosystem: one in which enthusiasts and detractors can dictate customer perception and experience for manufacturers.
Ramifications for providers—What are the ramifications of this shift? At a high level, the evolution of social media has introduced new contact channels that must be integrated into marketing, service and support strategies. However, while social networking and social media are certainly on the rise, there are still large groups of customers who do not communicate via these tools.
Therefore, differentiated service takes on an even greater role because of these new channels. A thorough understanding of customers’ channel preferences, combined with insights into the true value of customers to the business, must drive how companies interact with each respective segment.
In addition, because of the speed with which customers and information move today, companies must be able to incrementally, and very quickly, improve their operations based on what they learn from observing customers. As a result, many companies have shifted the focus of their investments from building channel infrastructure to creating nimble and robust content management and data collection and analysis capabilities.
From a marketing perspective, the evolution of social networks and online communities has resulted in a collapse of the marketing funnel. How so? Traditional, mainstream marketing forces a message through the marketing funnel, moving through stages from building awareness to earning loyalty. It only allows dialogue and relationship building as the prospect or customer progresses through the funnel.
By contrast, the digital revolution, and particularly social media, makes it possible to engage in a dialogue with prospects or customers much earlier and at many more touch points. The collapse of the marketing funnel, in turn, means the distinctions between marketing and sales become further blurred and, in some cases, disappear entirely. In fact, social media increasingly is being referred to not in terms of marketing or sales, but rather, as an “engagement channel,” which incorporates elements of both marketing and sales.
With consumers increasingly relying on third-party sites for usage and technical information, manufacturers must build capabilities to strengthen their brands and customer loyalty via these channels, as well as to up-sell and cross-sell relevant, related products and services, and gather and integrate cross-channel customer data. Indeed, smart use of these third-party channels can become a powerful way to boost image and customer satisfaction while reducing CRM operational costs."

CRM and Marketing

Monday, October 3, 2011

Is the customer always right? Different views or perspectives

Recently I saw a recent article by Malu Dy Buncio, the link to the article is at the end of this posting. In her opening paragraph she said: "...Obviously the customer is ‘always right’ because the decision to hand over their hard earned money for your product or service lies with the customer." But she went on to state that at times a client may not be a good fit for the supplier.

This is definitely my experience also, and at times, I have even given contact information or alternative suppliers to the client.

It is always hard, especially for a sales person or even a company, to let an existing client go to another supplier. But there are times it may be best for both parties, and at times there may be a good strategy in doing this.

This does not mean though that you should not try to meet their needs and/or their expectations, initially. It is important though that we do not allow the client to think that they are right, if they are not, but this needs to be communicated with finesse and honestly, and sincerity.

A case in point: We were selling industrial flooring systems to the global pharmaceutical industry, which were for the most part epoxy based. The advantages are that they are essentially seamless, easy to clean, chemically resistant, and many times stronger than concrete and resistant to impacts and heavy forklift traffic, to mention a few of the advantages. However, they are not always that tolerant of flexing, "suspended" flooring. At that time they could crack and peel off.

After a full review of the physical area and conditions, it was clear that our product would not perform adequately and most likely would fail in a relatively short period of time, leading to dissatisfaction by the client. This would not be beneficial for our company's image and reputation.

Therefore, we recommended that they go to suppliers of polyurethane systems which product we did not have at the time. The customer was shocked that we would not sell them a system that they felt would meet their needs. We explained why ours was not the correct system in this specific case, and whom they might contact. However, we also explained in detail all the other instances where our system was superior.

In the end, the customer was happy that we were honest with them, and we got their business in all of their other plants that did not have "suspended slab" construction. They were pleased, and we were rewarded with regular ongoing business. In fact, they would call us when they had a need, as we were not always aware of new or "rehab" requirements that they had ongoing. What could be a better Win-Win?

Another instance, where there may be a strategic reason not to supply a client, is one where certain customers either are highly demanding and consume vast amounts of time and effort, and yet the requirement is very small, or, they are poor payers. Many times this kind of client fills both descriptions.  If you "give" or allow your competition to take those clients, over the long run, your competition may have to go out of business as their costs of doing business may be much higher than yours.

Another situation, is, there are companies that intentionally do not want "zero" defects. Why, you might ask? Because having a positive customer experience is more memorable and makes a bigger impact and is communicated within the industry, than not having any experience at all. A specific manufacturer purposefully had a 1-3% defect rate. However, they increased their customer service department and gave them more leeway to handle complaints. The end result, was that the customers who complained about the "necessary" product, received excellent customer service and satisfaction, and the industry being supplied, heard these rave reviews, and many changed their suppliers to this great customer satisfaction manufacturer!

Thank you to Malu Dy Buncio and her article link below:

http://mansmith.net/index.php?option=com_content&view=article&id=298%3Ais-the-customer-always-right&catid=40%3Aservice-and-execution&Itemid=44

Wednesday, August 3, 2011

Turn-around CEO of Marvel Entertainment on CEO TV

Peter Cuneo, who has had success in turning around 7 different companies,is presently CEO of Marvel. He discusses a few of the challenges and keys to success. These are to keep customers happy, don't compromise on your vision or product/service, devise a strategy to overcome Financial Challenges, and convince Business Partners that had lost money before, that there was a new strategy to generate success. Therefore, they developed a licensing model and turned to motion pictures as a new avenue to generate revenue and profits.

Enjoy the short video below.
http://www.youtube.com/watch?v=bHl_3FkFVQQ