Business Wars Gibson vs Fender - Back From the Brink | 5
Jul 3, 2019
In the early 1980s, the U.S. guitar market is in decline as synthesizers take over. Fender’s employees orchestrate a buyout from CBS, igniting hope amidst financial struggles. Meanwhile, Gibson grapples with new ownership and heavy competition. We dive into a pivotal moment in 1986 as both brands battle to revive their legacies and appeal to a new generation. The podcast highlights a star-studded birthday celebration for guitar legend Les Paul, revealing the challenges and joys of sustaining iconic music brands in a changing industry.
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Fender's Decline and Buyout
- Fender's mismanagement under CBS led to its decline, prompting employee buyout.
- Despite the buyout, Fender still faced challenges like finding a new factory and adapting to changing musical trends.
The Struggles of Fender and Gibson
- Both Fender and Gibson struggled due to corporate mismanagement, impacting quality and brand image.
- New owners aimed to revitalize these brands amidst declining guitar sales.
Fender's New Factory
- Fender found a small warehouse in Corona, California, for its new factory.
- Despite its limited size, they started production with around ten guitars daily.