UNIVERSITY OF SAN CARLOS

School of Business and Economics

Department of Economics

An Industry Analysis on:

GUITAR HANDICRAFT INDUSTRY

Submitted to the Faculty Member of the

Department of Economics

Submitted by:
Cornalina C. Ceballos
Armel Joseph A. Melchor
Hannah Jean S. Tan
Euchiabelle Shye M. Fernandez
Veronie Kaye R. Ochia
Date of Submission
May 20, 2015
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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,

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
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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.

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Body
The nature of the market in Guitar industry has a number of buyers

The target market are the singers, rock star, retailers, consumers
The costumers who are willing to learn in playing guitar

Product 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 12,000

Number 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 products

Cost of production:

Workers
Electric bill
Raw Materials

Non-Price competition such as advertising:

Brochure
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Billboards
Classified ads
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.

a 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.

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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

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.

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Documentation

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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-famousguitars/

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