KeithAdv
I don't think it's quite fair to call Gibson management dense. I think they are reacting to a desperate situation.
I would venture to say that Gibson management was dense, but that it goes back a long way. Businesses go under when they forget why they are in business. Yes, every business wants to make money, but nearly every business out there started by wanting to provide a product or service to the public. Makes no difference if it is the corner bakery or the manufacturer of a world class musical instrument. They become a good company by listening to the customers, providing a quality product or service, and selling it for a fair price.
But when a business becomes more about making money then anything else, things go bad. When more money is the mantra, they begin to find cheaper places to make their product or hire people who aren't really qualified to provide a service, all to reduce their cost - but they keep their prices the same so they can make more money. It works for a while, but people ultimately realize the name alone is not worth the money and they quit buying.
A smart business will realize this when they get off track and work very hard to get back to where they were. Its hard, as once you lose the trust value with the public, it is hard to get it back. It can be done, but it isn't easy. The longer you wait, the harder it is. Others will instead look for the next great thing to 'invest' in, that will make them even more money. Sometimes it works, but more often than not it doesn't.
Gibson is no different than any other failing company. Look back and you will see a company who use to make a great product and worked hard at making a great product. Then they just worked hard at making money. Now they have neither. Most companies will fail as they are too far in debt to ever get out. Some of these companies continue as Zombie companies. They sell their name (their only thing of value) to put on products, products they don't build, service or control. Others never make it to zombie status.
Time will tell what happens to Gibson. But there is nothing new to see here....