Assess market trends and how the company is addressing these issues. This is only for the guitar market and not any other economic or political trends.

Company History:

Wave Instruments, Inc. (WII) was founded in 2008 as a C-corporation by Monica Mendez and is a leading manufacturer of premium acoustic and electric guitars. Ms. Mendez has extensive knowledge of the industry with experience in senior manager positions at Fender and Gibson Guitars. The initial capital for the company included $475,000 from Ms. Mendez and $300,000 from a private stock sale to Ms. Mendez's family, employees, and other investors. With her industry connections, Ms. Mendez has been able to hire a talented group of artisans that have contributed to the company's success. The board of directors includes prominent people from the San Bernardino area that are also investors in the company. WII was an early adopter of online retailing for guitars and one of the first manufacturers to successfully advertise/promote their product using social media. Sales increased rapidly and WII achieved profitability in the second year of operations. The company began by offering made-to-order electric and acoustic guitars and quickly created a reputation for quality artisanship. WII has received numerous industry awards and is now one of the top custom guitar manufacturers in the world. In 2012 WII began offering limited-edition collectable models with proceeds going to charity. The first design helped to raise over $300,000 for Feeding America, a nonprofit food bank program. These guitars allow the company to showcase the expertise and creativity of the design team while supporting charitable organizations. There are 2 acoustic, and 2 electric models produced each year with the designs announced on the company website. Each design is limited to 10 guitars, and these are typically sold out prior to production. The sale proceeds from the collectable models are donated to charity and do not add to the profitability of the company. However, WII receives extensive publicity and brand recognition for this program. By 2015 the company had established a recognizable brand and an excellent reputation for quality. Utilizing this market position, Ms. Mendez launched the next phase for WII by producing a line of ready - made standard guitars. These guitars are produced in volume using an automated manufacturing process. The models are priced competitively with other high-end guitars in the marketplace. 40% of standard model sales are through the company website. In 2016 Guitar Center, the largest chain of retail music stores, began selling WII's standard line and was soon joined by Sam Ash Music and the online retailers Sweetwater and American Musical Supply in 2017. Additionally, WII guitars can be found in over 1,000 independent music stores throughout the country. The standard line expansion was financed with a significant loan from TSV Capital Partners in 2015. The loan was used to purchase new equipment and launch the marketing campaign for the products. The company also moved operations from Rialto to their current location in San Bernardino, leasing 73,000 square feet (about ) of the building. TSV made further loans to WII in 2017 and 2019 for additional equipment and expenses related to the standard model line. TSV exercised their option to convert all outstanding debt to equity in 2019 and became a 30% shareholder in WII. TSV continues to provide management consulting and has a seat on the board of directors. By 2020 growth in the sales of WII's standard model guitars required the company to lease the remainder of the building. The facility is efficiently designed and provides ample room for future expansion. The company began giving tours of the property in 2021. WII's creative marketing department utilizes several internet platforms and has been highly successful in establishing the brand identity and increasing recognition. Ms. Mendez gave a TED Talk in October of 2021 that has been viewed by over 35 million people. YouTube posts of people using WII guitars are popular and growing. Marketing has also utilized guerilla marketing campaigns including pop-up retail stores, projecting a 30-story image of a WII guitar onto 30 Rockefeller Plaza in New York, hosting play - along sessions at concerts. In 2021 a WII owner challenged a Fender owner to a guitar battle and the series of videos went viral capturing over 40 million views. This ongoing battle now includes other competitive guitar brands and several WII owners have joined the series. In 2017 influential guitarist Kaki King ordered a custom acoustic model from WII and used it in several music videos and interviews. WII gained additional notoriety when Green Day frontman Billie Joe Armstrong was photographed with his custom WII guitar for the March 2021 cover of Guitar World Magazine. Several other famous guitarists are now owners of a WII instrument. WII's website underwent a complete redesign in 2021 and now provides an improved customer experience that supports sales. The new site also includes an online store for accessory products

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