1.2 The rise of foreign-made guitars
The early to mid-1960s were the boom time for Epiphone. However, the rise of foreign-made guitars had given a heavy strike to the US industry. It had caused the market share of the Epiphone/ Gibson decreased by 40% and many companies which couldn’t deal with this problem had closed down entirely. In addition to the fall in sales, the resignation of the Gibson manager Ted McCarty gave a great impact to the quality of the product. All of the problems arrived in a quick succession. In 1969, Gibson’s parent company CMI was purchased by the Ecuadorian ECL Corporation which was the manufacturer of beer. The idea of moving Epiphone production to Japan had actually floated before the ECL takeover. However, the crisis was not solved until 1976 Epiphone introduced a number of new models including a series of scroll-bodied electrics. By 1979, Epiphone product list was gathering speed, with over 20 steel-string flat tops, and plenty more besides. To sum up, Epiphone overcame the problem of the competition of foreign-made guitars by improving the quality and producing speed at 1976 and 1979.
According to the Joint Organization Data Initiative, Russia was once the world’s largest oil producer but Saudi Arabia overstepped it in June 2012. Saudi Arabia’s oil output rose 3 percent to 10.1 million barrels a day in June from May as it exported the most in a month since November 2005. Although Russia pumped more 0.1 million barrels a day of oil than previous output, which is 9.9 million barrels, it still could not retain its world ranking. The reason why Saudi Arabia could overtake Russia as the world’s largest oil producer was because Saudi Arabia has rich oil deposit and it adjusted its speed in producing the oil.( Business Week, 2012)
1.3 Financial problem
Epiphone was handed down to Orphie and Frixo along with the death of their brother, Epi. They were respectively responsible for the financial and mechanical running of the operation. At the initial stage of the two brothers worked together, everything seemed to be business as usual. Epiphone continued to fight with Gibson and its guitar still popular among the players. Unfortunately, the cracks soon appeared. There were some clashes of view between Orphie and Frixo. In 1948, Frixo decided to sell his share to Orphie and withdrawn from the...