GLG News by Marketing or Advertising Experts

Donald RheaultFounderOurSalesRep

Intel technology opens way into smart phones and tablets.

July 19, 2011

Analysis of:Press Release: Intel Vies to Stave Off ARM Challenge with Low-Power Technology | www.intel.com

By the end of 2011 Intel will be producing a Tri-Gate 3-D transistor technology in 22nm. This is directly aimed at ARM and Marvel's dominance of the mobile device market. Intel devices will offer half of the power of existing devices with the same capabilities thereby extending battery life. It will also blunt ARM's attempt to enter the notebook market with the help of Microsoft.

Donald RheaultFounderOurSalesRep

Great chance for some semicondutor companies to gain market share.

April 1, 2011

Because of the earthquake and Tsunami in Japan there are spot shortages developing in the semiconductor supply chain. For the last several years large OEMs have made it very difficult to qualify a new vendor because there was no real part shortage' and many of these companies laid off their component engineers who did these qualifications, leaving only a few for end of quarter emergencies.

Donald RheaultFounderOurSalesRep

Cisco Must Qualify Additional Sources to Broaden Its Supply Base.

July 30, 2010

Analysis of:Cisco's supply chain woes lead users to consider alternatives. | searchnetworking.techtarget.com.au

Over the past several years Cisco and others have kept a tight approved vendor list (AVL) and no problems of supply existed.It was becoming clearer over one year ago that there was little component inventory in the pipelines of OEMs, IC suppliers, distributors and contact manufacturers.Now that Kyocera, TI, Kemet, Cirrus Logic, Broadcom and other big suppliers are having trouble with deliveries smaller suppliers will be qualified by agile competitors.

Donald RheaultFounderOurSalesRep

Sales outsourcing is alive and well in electronic components.

February 11, 2010

Analysis of:Sales Outsourcing through Channels | www.channelvission.com

Many companies selling ICs use a mixed direct and manufacturer's rep model. They are able to grow with a variable cost of sales. There is a new, non-exclusive model at www.oursalesrep.com .

Donald RheaultFounderOurSalesRep

No bailout unless it is the cheapest alternative and is without moral hazard.

January 15, 2010

Analysis of:HP and Microsoft Simplify Technology Environments with Solutions Built on New Infrastructure-to-application Model | www10.aeccafe.com

Governments the world over have been notoriously bad about picking commercial winners. If companies become "too big to fail" and have political support from many state political entities they often become dinosaurs and eventually fall to more agile competitors.One must study the immediate cost of failure in jobs,waste and money to pick an alternative. With the global market it is also imperative to review the impact of a foreign competitor.

Donald RheaultFounderOurSalesRep

The Impact of Teleconferencing on Sales

December 25, 2009

Analysis of:Technology predictions for 2010 | www.telegraph.co.uk

Teleconferencing at the customers site enables a salesperson to answer technical objections, offer special pricing, and overcome obstacles. This dramatically speeds up the sales process and makes for a more impressive sales presentation.

Donald RheaultFounderOurSalesRep

The need for Cloud Selling and Lean Selling

September 7, 2009

Analysis of:How to Stay Relevant in Sales | blog.inc.com

Sales forces are structured now as they have been for decades, even as some of the software management tools have evolved. A basic redesign is necessary.Those companies using reps will come out of the recession with better balance sheets and more orders because of a continual presence at their customers versus companies that have cut their direct sales forces..

Donald RheaultFounderOurSalesRep

Companies losing market share

June 8, 2009

Analysis of:10 companies in trouble | www.eetimes.com

There are many companies selling electronic components that are losing market share quietly and persistently. This will be evident after the rebound. And they are heavily concentrated in the analog IC area. There are several ways to sell your ICs into the OEM market: a direct sales force, through distribution, and through manufacturer's reps. Intel has a fine, dominant direct force with a fairly small, identified account base. The analog/mixed signal and discrete IC companies need to win designs at a broad base of accounts necessitating a large sales force. In a declining market the rep force earns less but keeps their number of sales people intact- a variable cost of sales. Companies such as Analog Devices, National, and Fairchild among others are decreasing their sales people because they don't have a variable cost of sales model. This will result in fewer deign wins now, resulting in a slower emergence from the downturn and a significant loss of market share.

Donald RheaultFounderOurSalesRep

Infineon should gain market share coming out of this downturn.

February 6, 2009

Analysis of:Infineon Gains After Boosting Savings Target, Reducing Spending | www.bloomberg.com

Infineon has recently cut costs by reducing capital spending and layoffs, but it has wisely kept its independent rep force in place. The benefit of this force is in its variable cost of sales: the number of sales people remain constant but cost less and get hungrier. Many of Infineons competitors have a direct, fixed sales cost force. Some of these competitors have even been laying off sales personnel. By capturing design slots during the downturn Infineon should come out quicker and stronger than TI, National etc.

Donald RheaultFounderOurSalesRep

SMIC may have bottomed due to increased demand in China but US semi companies may not benefit.

February 6, 2009

Analysis of:Semi Manufacturing Says Orders May Have ‘Bottomed’ (Update1) | www.bloomberg.com

If there is a turning point in demand ahead for US companies only some will see it because some have been "eating their seed corn". If the market does turn this summer a large number of semi companies ,especially in the analog/mixed signal market, will not be on the new systems being developed because they have cut their sales forces when they should have gone to a variable cost of sales. The one saving grace of this recession is that it has demonstrated the superiority of the manufacturing foundry model-variable, not fixed manufacturing cost. National Semi in the old days always picked up market share on TI and Fairchild because they kept their independent rep sales force in place-although making less money, and hungrier- gathering design wins during the down time. If the semi companies at least haven't aggressively redone their sales budgets and commission plans they will end up with a demoralized and less aggressive sales force.

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