Re: Henry says ukes will save Gibson- They really need an L5s and marketing 101
how does increasing sales + high quality (low return rate) = bankruptcy?

Henry has always claimed (and may believe) that Gibson has a healthy business model that become slogged down in debt because of acquisitions- he claims quality has never been low, ignores the dealers that got left behind, etc...
In a very narrow way he has a point- if the guitar business was standalone it would probably be profitable... that's one of the reason's its worth rehabilitating the company-
However, he's missing the bigger picture (or spinning the story to make himself look better)-
1. The acquisitions were totally mishandled and may be so hard to sell that they have to go at fire sale rates and if they can't cover the debt they are in big trouble.
2. The competition has had a field day- look at all of the Gibson-like or better than Gibson products that have filled in the gaps.
And this is directly connected to dealer issue- the competition now has a lot more space on the walls and many players are growing up never touching an actual Gibson.
In the articles we cover the fact that it is possible that Gibson could possibly survive if they simply dis-invest-
However, to rebuild the brand and grow, they will have to address quality, competitive value points (quality at a given price).
I'm pulling for a totally rehabilitated Gibson, its one of the reasons it's been worth writing a 'to do' list- otherwise they will just float around until Asian deep pockets grab em.