Pearl River Piano

2296 Words10 Pages
Introduction PRPG was a state-owned enterprise and was developed form an old piano factory in Guangzhou of China. The piano factory is located Pearl River, so that the brand of piano is called Pearl River. Since the adoption of an open-door policy, Chinaexploited a range of new opportunities provided by a market-oriented economy for expanding production, employments, and profits through free trade markets. As a result, PRPG face a chance due to import technology and export products, and then they were expended to become Pearl River piano Industrial Corporation. Their business become more successful , after they merger with several small company. In2000, PRPG had more than 130 strategic alliance through-outs the country, in addition…show more content…
Bythe end of 2000, PRPG was the largest piano builder in china, the second largest in theworld, with an annual production capacity of over 100,000 pianos. The company hadmore than 4,000 employees with a total asset value of approximately $130 million. Also it diversified into other musical instrument, and contains more than 50% of piano market in China. However, Tong did not satisfy this progress; he thought thePearl River piano could be a world class brand. 2.3 Competition in domestic market Hundreds of private companies began entering the market and competing with their low quality and low price products. Such as the old well-known brand Star Sea and NiEr, and numbers of emerging piano builder company with a low price products. 2.4 Future prospects of PRPG According to the case, Tong believed that the company could survive by themselvesin domestic market; however it is impossible for an entrepreneur to stay in the same position permanently. And he thought that the company had made some successes, butit is not enough for a company to stay in the good position. The company is stilldeveloping and it needs to extend business in the global market in order to satisfycompany’s strategy. 2.5 Challenges in international market When compared with other Chinese piano builders, PRPG had gained someexperience in exporting. Tong believed that although the piano market in the US was mature, PRPG could still
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