Global Electric Guitar Market
Table of Contents
I. Introduction to the Global Electric Guitar Market
The electric guitar is not a commodity or a regular good, is an instrument that becomes an extension of the player and helps him to convey emotions, gives him the sense of belonging to a certain group and helps to show his or her own individuality; this have high consequences in terms of the relationship from the companies with its customers as well as the brand value, in this respect is similar to a luxury product, with the addition that there is a huge loyalty towards brands.
Two companies clearly dominate the market: Fender and Gibson. They were also the pioneers of electric guitars and boast a wide range of products for diverse target markets: their entry-level products range from €1000 and their high standard production models are offered for about €10000, from that price and higher they seek to appeal to the collectors market, going to as high as €800000 for a guitar from a particular year, in this aspect they not just sell the guitar as an instrument but as an investment.
Is it not unusual for guitar players to identify themselves as a “Fender guy” or a “Gibson guy” to the extent of attributing personality values to the stated phrases, even if the don't actually possess an instrument from one of this two brands.
The Global Electric Guitar Market is highly differentiated, with companies offering a wide palette of colors, materials, sound and features, as well as “heroes” to promote a particular model.
II. Introduction to Porter’s Five Forces Framework
III. The Bargaining Power of Suppliers
Before assessing the impact of suppliers to the manufacture of electric guitars, it is important to know the structure of the guitars, and the materials that have been used. As can be observed in the image, 3 main parts compose the electric guitars: The headstock, the neck and the body, and all are made
I. Introduction to the Global Electric Guitar Market
The electric guitar is not a commodity or a regular good, is an instrument that becomes an extension of the player and helps him to convey emotions, gives him the sense of belonging to a certain group and helps to show his or her own individuality; this have high consequences in terms of the relationship from the companies with its customers as well as the brand value, in this respect is similar to a luxury product, with the addition that there is a huge loyalty towards brands.
Two companies clearly dominate the market: Fender and Gibson. They were also the pioneers of electric guitars and boast a wide range of products for diverse target markets: their entry-level products range from €1000 and their high standard production models are offered for about €10000, from that price and higher they seek to appeal to the collectors market, going to as high as €800000 for a guitar from a particular year, in this aspect they not just sell the guitar as an instrument but as an investment.
Is it not unusual for guitar players to identify themselves as a “Fender guy” or a “Gibson guy” to the extent of attributing personality values to the stated phrases, even if the don't actually possess an instrument from one of this two brands.
The Global Electric Guitar Market is highly differentiated, with companies offering a wide palette of colors, materials, sound and features, as well as “heroes” to promote a particular model.
II. Introduction to Porter’s Five Forces Framework
III. The Bargaining Power of Suppliers
Before assessing the impact of suppliers to the manufacture of electric guitars, it is important to know the structure of the guitars, and the materials that have been used. As can be observed in the image, 3 main parts compose the electric guitars: The headstock, the neck and the body, and all are made