Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 56.29

-0.7%

12:20 PM EST

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To: gdichaz who wrote (6074)	7/25/1999 8:55:00 PM
From: Oliver Schonrock	Read Replies (1) of 29987

gdichaz, Rockt Scientist and others. gdichaz, your concerns regarding G* marketing ability are very real, IMO. OK, we all think (the longs anyway) that G's structure to sell through existing SPs is pretty clever. I have to tell you, it's not new and it has many pitfalls. I myself have spent the last couple of years managing the local arm of a global company that sell electronic widgets via distribution. And that's what G structure is...distribution! The only difference is that G's SPs own shares in G and that's a real plus. The limitation of distribution is basically that the principle loses control and cannot control the marketing/selling efforts of its distributors (SPs here). Distribution selling is something that takes a long time to master (my current company happens to be quite good at it but didn't get there overnight). It takes great leadership and vision and positive direction in the marketing department. Service providers are busy people, G* sales will be peanuts to them. Strategic peanuts maybe, but peanuts nonetheless. G* needs to be very proactive setting direction for them (maybe region specific) in terms of target markets, target prices, type and quantity of promotional activities. I see no evidence of the above so far. Admittedly if I were in BS's shoes I wouldn't publish that stuff either, so I hope that G* is fully aware of this it's all happening behind the scenes. This is the reason why I will be watching closely over next few months...to look for that evidence. If it's not there, it may take a very long time (2-3 years) before G* learns those lessons and fixes them. That will possibly make for an unprofitable 1st constellation and could mean it's time to bail. Oliver

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