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gibson financial issues??

Mr Natural

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I think the simplified answer is that overall the market for new guitar sales, particularly of traditional models is declining and Gibson's situation is compounded due to some poor business decisions made in the last 10-15 years. The music business as a whole has moved on a lot from guitar-centric rock of the 50s-90s, and the guitar isn't the lynchpin of a band as much as it was.

Gibson, like the other big 'traditional', Fender are victims of their customers' desires for as little to change as possible. Everyone wants their LP or Strat to be as magical as it was back in the 50s. Don't forget that LPs and Strats were once considered futuristic and state of the art when they were released, but today's traditional salesbase aren't interested when Gibson or Fender try to modernise and improve those models. And that market is shrinking too. There's only so many Les Pauls you can sell when the buyers already have their fill of Les Pauls from years gone by. It's difficult to evolve a model when everyone likes their old stuff better than their new stuff, and neither Gibson nor Fender have been particularly successful when they try to release something new or revolutionary.

A simplified business-sided analysis of the situation:



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