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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Souze who wrote (21309)	1/18/2001 5:51:57 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 29987

Vertical and Horizontal. The vertical probably derived from 'vertically-integrated'. Vertically-integrated companies would move through their supply and purchasing associations to capture upstream and downstream margins. For example, if selling oil, one could buy companies, such as power stations, which use a LOT of oil. That way, it would save the marketing costs because that company would use its own oil. No need to hire lots of sales people to sell oil to them. They'd just do a book-keeping transfer. Rather than buy oil from OPEC, at extorquerationate prices, it would be cheaper to just buy an oil field and supply yourself which would secure supply and control input costs. Rather than pay somebody else to dig for oil in the new field, the company could buy an oil-drilling company and that way, they'd get priority drilling and control well-log information more easily. Since they are now good at drilling, they might as well put some money from selling oil products into the drilling division and go into drilling for diamonds or doing geotechnical reviews for other companies. So, Globalstar could sell to the head office purchasing division and that would see the product used throughout the organisation. The horizontal markets are where multiple sales are needed, as for selling to individuals or small shops or boat owners. I think that's the answer, but I'm making it up. Mqurice