UNIVERSITY OF SAN CARLOS

School of Business and EconomicsDepartment of Economics

An Industry Analysis on:GUITAR HANDICRAFT INDUSTRY

Submitted to the Faculty Member of the Department of Economics

Submitted by:Cornalina C. CeballosArmel Joseph A. MelchorHannah Jean S. TanEuchiabelle Shye M. FernandezVeronie Kaye R. OchiaDate of SubmissionMay 20, 2015

Introduction Guitar Industry is also known as guitar manufacturer. Across the globe there are many who specialize in guitar making. And one of them is found in our own. In the Philippines Cebu, specifically in Mactan Island, we can find a lot of experts contributing skills and talents in guitar making.

What is a guitar? Base on a standard definition, a guitar is a musical instrument under string instruments usually having 6 strings but it can go up to 4 to 18 strings. Usually guitars are made of different types of woods. There are types of guitar such as acoustic or also known as the classical, also the alto, the tenor, and the bass tuned guitars. Aside from the tunes of each guitar, in assembling a guitar we have to take note and consider their parts such as the neck, the head, the body, and etc. for it will take a serious defect if something goes wrong.

The materials used for this instrument can also affect the price of each individual; the shape also varies to the sound it amplifies. The common woods used for making guitars are Nara, Denarra, Lawanet, and the Nangka woods. The most beautiful-sound-creating-material used in guitar making is the Turtles shell based on some of the experts.

So how guitar industry did took place in the business field? Back on the early ages, people are so artistic that they created beautiful melodies through banging, clapping,

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plucking, and even strumming. Around 1900, those methods of creating music had its name and even developed standard instruments for it. Guitar is then one of them. During this time, people make a living in out of making guitar. And this is how guitar industry slowly entered the business field. Up until now, many from the Philippines particularly is Mactan Island continues having guitar as their source of income, the well-known Alegre Guitars, the Guitar Master, the Jerrys Guitar, and the Celias Guitar are only few of the manufacturers found in here.

Some of the guitar products made in the Philippines were exported outside the country because of its boost and good quality they were able to achieve. And for the Philippine economy, this is a good sign that guitar industry contributes a fair percent in making the Philippines raise in the economy.This is a clear indication that our handicraft industry is enjoying the patronage of Filipinos nationwide. But we are focusing in the guitar instrument which is one of the largest industries in the Philippines. As we all know that the Philippines are rich in natural resources and we can make a lot of different kinds of native handicraft. Philippine is the second largest contribution of handicraft industry of the entire world. Despite this, Filipino craftsmen have indigenous overcome scarcity and increasing prices of raw materials by constantly producing new designs for their products. Over the years, Philippine handicrafts have evolved through innovative changes in designs reinforced by exciting choices and combination of indigenous materials.

BodyThe nature of the market in Guitar industry has a number of buyers1. The target market are the singers, rock star, retailers, consumers1. The costumers who are willing to learn in playing guitarProduct sold and market price Acoustic guitar Php 1,500-Php 100,000 Ukulele Php 1,000 Php 33,500 Electric Guitar Php 5,000 Php 130,000 Acoustic-Electri Guitar Php 2,000 Php 162,500 Bandurria Php 1,400 Php 12,000Number of competing firms in Cebu City: Alegre Guitar Susings Guitar Inday Celias Guitar Jerrys Guitar Guitar Master Maxanboyed Guitar Island Guitar Antons Guitar

Barriers to entry and exit Not having any business permit Quality produced is low-end quality Overpricing of productsCost of production: Workers Electric bill Raw Materials Non-Price competition such as advertising:1. Brochure1. Billboards1. Classified ads1. Flyers

Which market structure will categorize your business? Well focus our product to the retailer outlets so that the consumer will know our product and may promote it to other people so that they will acknowledge our brand.

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1. Identify one big problem of such market in terms of its growth and expansion. Low of supply high in demand and low of demand high in supply.Provide an economic solution to the problem. Hire more workers so that they can supply the demand of their customers. Produce more supply when the demand is high. Advertise or promote products when the demand is low. Train more people to make guitars so that in case there are many buyers they could automatically supply the needs of the customer in no time.

Conclusions

The results and discussion of accomplishments per objective of Handicraft Industry in guitar is that it is famous throughout because it is affordable, world-class quality and durability and here in Cebu, the handicraft industry in guitar, it is made as a traditional and to make it as a popular by tourist when they visit the place and their objective is if the tourist try to look the product and who wants to buy, they will make as a souvenir and they will be satisfied out of it. The point on why they establish handicrafts industry here in Cebu is that they want to show to not just the foreign tourist, local tourist and the next generation that they want to have that potential talents that they are willing to show to other that they have ability and skills to make something different that can make people proud of what they had doing in order to have traditional culture which can influence many to try what they have and to be followed by the next generations who wants to make a business like this. Many people personalized guitars to be able play music and to make it as a hobby. The Results and Discussion of the Accomplishment per Objective of Handicraft Industry of guitars is when the other people are satisfies their product, the handcrafter will continue to produce more handmade guitars and they want to know on how to make a handmade guitars. Also the companies should improve their marketing strategies for the next generations in order to maximize profit.

Documentation

Reference http://www.olx.ph/index.php/classifieds+directory/pricelist/1/q/Banduria?x=2?x=2 http://www.guitarcenter.com/Ukuleles-Folk---Traditional-Stringed-Instruments.gc http://www.ukuleletricks.com/5-best-ukuleles-to-buy-for-beginners/ http://www.guitarcenter.com/Acoustic-Guitars-Guitar.gc http://en.wikipedia.org/wiki/Guitar_manufacturing http://www.ferangeliguitar.com/ http://www.philippines.hvu.nl/cebu2.htm http://www.everythingcebu.com/lifestyle/business/cebus-famous-guitars/ Page 6 of 10