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Location: Omaha, NE | I've been thinking about a lot of the comments made on the recent "How popular are Ovations?" thread. The more I think about it, the more I conclude that Ovation is the typically tired brand. It needs some new invigoration. Some new juice.
Then I start asking myself how it makes any sense at all that a military contractor owns a guitar company. I see no way the bean counter types could get on board of a major re-construction of the Ovation brand.
So, there are two options. Option 1 is that Ovation goes through a slow and steady decline, resulting in the brand getting sold off to some conglomorate that doesn't care about guitars and just wants to milk what's left out of it. So, all production goes overseas, innovation stops and Ovation eventually becomes the next Washburn.
Option 2 is that a group of motivated and serious Ovation enthusiasts buys the company. Once freed from the shackles of corporate ownership, we reinvigorate and build it back up. I've got lots of ideas there, but that's for another time.
I'm more than a little serious about this. If anyone has any thoughts, I'd be interested in hearing them.
Jeff |
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Location: Phoenix AZ | Jeff,
Why do you think Ovation is (or will be) going through a slow stready decline? Do you have data to back this statement up? Not to disagree, but what I see is that the factory is busy as ever and turnign out some of the best products they have in the past 20-30 years. Ovation benefits by being part of Kaman Music, which is the largest musical instrument producer and distributor in the world. According to the financial statements, year on year earning are up 20%. Yes Ovation is part of a "big defense contactor", but Kaman Music is hardly an insignificant factor. KMC accounts for 22% of corporate revenue. That's a sizable amount and not something that big brother is going to let die on the vine any time soon. Have you played a Custom Legend LX? Have you seen the Adamas and Shiny bowl reissues? Have you seen how much guitar you can buy for under $1000? Sure, I wish Ovation was a ma and pop boutique guitar maker of only top end stuff that everyone and their brother was clamoring to play. But I'm afraid IMHO that they would have been out of business long, long ago. Dave |
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Location: SoCal | Jeff,
We all have to admit that the conglomerate started and led by Charles Kaman is different. It is an amazing story how engineers took the risk and were able to succeed in the music industry which was (and is) stepped in the past. We see innovation in design and electronics now but back then, everything looked alike.
I question whether the corporate "suits" are indifferent or don't allow an element of autonomy. IMHO, they see the importance. A couple of Annual Reports and Quarterly Reports that I had dissected showed it as a profit center while aerospace units had a loss. Kaman/Ovation isn't a distraction or a drain on profit.
With the aerospace industry in such travails (since the early 60's), they probably value the diversification. As long as they allow the management sufficient autonomy, they have profit and diversification.
Yes, there is always a chance of divestiture. I am sure that there are investors who would like a chance at an IPO. Most likely, employees would like an opportunity to acquire voting shares.
However, looking back over the last five years, would there have been any material change to the product line or marketing if it was divested from the aerospace? I don't believe the structure/funding of the musical entity had any negative influence on their good or bad decisions.
The factory has had the freedom and capital to develop some great products and/or reissues. Areas that we take issue with such as marketing and artist relations could have been done differently but the decisions were made by Kaman/Ovation management. I don't believe they were limited by the board of the conglomerate. There are "bean counters" at every level - that can be positive or negative.
Ovation has been able to survive and grow during challenging time. We have seen companies that have been swallowed up due to inefficiency. Maybe the "bean counters" have also been able to reduce or eliminate inefficiencies. Possibly, the price increase on LX models (mid-2005) was based on the "bean counters" determining that it was necessary based on the cost of operations. Or, an opportunity to carve out a percent or two of additional profit. No problem as the guitar is a tremendous value then and now.
Personally, I would like to see the import headstocks not say Ovation, that more artists were bribed to play the Ovation or Adamas. However, they are making great instruments, have the highest quality service after the sale that I have seen, and are always working to improve (LX, contour bowl, OP-Pro/Studio/VIP pre-amps).
Actually, I see the current operations as more "Mom & Pop" than a manufacturing operation. I can access some great, helpful staff when I have a question or problem. If you need service not covered by warranty, you get professional support. In fact, Ovation and Adamas are filling a niche need, as would an individual luthier. They will never eliminate the "wood box" of whatever brand(s). Like it or leave it.
Of course, it would be fun to conjecture a buy-out by dedicated, crazy-ass, opinionated Ovation lovers - hell with the bottom line. However, does anyone remember all of the recommendations for the OFC guitar? We couldn't come to an agreement whether it would come with what type of neck (wide/narrow/standard or slothead), choice of pre-amp, choice of color, center hole or multi, wood or textured top, color, price, etc. Enthusiasts should be on a focus group, now or then, not in the decision making phase.
If it was ever possible, I would love to see a stand-alone entity. However, I would also expect it to be managed by individuals who had superior management skills over their ability to play a guitar. |
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Location: south east Michigan | Well said Mr. Calman. |
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Location: Cicero, NY | I'll second that. |
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Location: Capital District, NY, USA Minor Outlying Islands | I have to agree with standingO.
Nevertheless, you might want to look into to buying some stock on your own. |
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Location: Upper Left USA | What is the Stock name for the mothership? Is it Kaman overall or does it break down to an Ovation/Hamer stock? |
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Location: Phoenix AZ | KAMN |
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Location: Upper Left USA | KAMAN
5=0&D3=0&ViewType=0&PeriodType=7]KAMAN
on MSN
Not exactly teetering on the edge of failure!
I should have bought stock when I bought my LX back in "93".
"One word, Plastic!" |
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Location: Upper Left USA | The Vision Statment reads:
Kaman's strategy for the Music segment is to:
Preserve Kaman's leadership position as the largest independent distributor of musical instruments and accessories
Build on the company's strong brand identity, and add new market-leading names to the company's offering of proprietary products
Lead the market with distribution systems and technologies that add value and reduce costs for the customer, the supplier, and the company |
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Location: Texas | Quite often when I turn on the TV to watch music programs I see "Takamine".
What I'm saying is, Takamine seems to have the visibility that Jeff is asking for, for Ovation.
-Gary K |
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Location: CT | I agree on the headstock thing. I felt like I had 'Joined the Club' in the early '80s when I finally got the Custom Legend I was drooling over. Then the Ultra, Applause, Celebrity etc. flooded the market, and every Tom Dick and Harry has one. At least the old Celebrity's said so on the Headstock, now everything says Ovation, and you can't tell what anyone is playing. Sound wise, they are night and day. I got rid of a SS bowl Celebrity when I A/B'd it with a '83 Collector(mind you, it's 'hand selected' spruce -which is no longer an option, and the Ovation A brace - essentially the original Custom Legend with a SS bowl). With the Celeb., I thought that's just what the super shallow bowl sounded like. This '83 Collector sings, compared to that. I'll never buy another non-USA Ovation again. |
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| Nice Idea but it's like having a drunk own a Bar! I know If was part owner I'd have the production line making Adamas 1's as fast as I could decide on the colors......
If you see my point. ??
Other than that, Ovation is alive and well and (although I personally do not believe they have ever made a better guitar than the Adamas 1) they have some great instruments, unlike anything any other company makes. |
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Location: SoCal | "inmates running the asylum" comes to mind. |
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Location: Chehalis, Washington | Try running a bakery with four teenage/young adult guys working for you... :D |
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Location: Denmark | It's my impression that the guys running Ovation do a reasonably good job keeping the business healthy. I don't know the LX-series, but people here on OFC seem to be happy about them and from what I have seen on the Ovation site the manufacturing methods are contemporary. As long as they don't compromise quality of materials, factory setup and finish the guitars will probably be good.
Only problem I see is that Ovation does not acknowledge and support the world outside US. And we have and immense amount of money just waiting to be spend on Ovation guitars. |
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Location: Birmingham, AL | I agree with Tony and StandingO. I don't think they are "tired." Ovations have very advanced electronics built into their guitars. They are probably the most advanced out there. And, anyway, how far can modify an acoustic guitar before it loses it's identity? They still have fine workmanship, just as good or better than my 30 year old ones. They still have that unique sound, and still play better than any other factory built acoustic guitar. If you've ever played an Ovation "copy", you know how bad they suck. The real thing is still best. Perhaps people's tastes may change, but I think there will be a place for Ovation. Unless Kaman goes under, I would hope they would keep Ovation in the family. Considering what's happened to Guild and Gibson it could be tragic. |
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Why don't we buy Ovation from Kaman?
