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Pearl River Piano Group Case Study

 

Rivalry among established firms may prompt certain moves. PRPG face somechallenges, since piano is traditional European musical instrument, European pianoshas a long history, and they always target upper market, such as Steinway. PRPG willface a strong challenge when they target upper market. For example, althoughYAMAHA is the largest piano producers, they focus on medium and low-end market;however, Tong would like their PRPG become best brand, next only to Steinway. Inaddition, PRPG not only import technology of piano making, but also learn andintroduce western culture to them.Higher the entry barriers, PRPG face the difficult entre in US market; the US peopledo not believe PRPG can make low price high quality products. PRPG cannot easilytarget foreign people. US people stay loyal to their local product.The bargaining power of buyers may lead to certain foreign market entries. In USmarket, there are many competitors, such as Steinway. Steinway product always targetupper market. Buyers may buy Steinway product, rather than PRPG.

1.2 Resource-based view 

According to case 8, in 1960-1980, the factory had very low productivities, lowcompetitive ability, even less than 100 labors and produce only 13 pianos per year.The industry introduced total quality of management in 1988, and they also promoteISO 9000 in 1998. Moreover, they built business partnership with YAMAHA via joint

            

China’s Pearl River Piano – Tuning into the Global Market




Abstract

The case “Pearl River Piano – Tuning into the Global Market,” describes the growth of China-based Guangzhou Pearl River Piano Group Ltd. (PRGP) from a small Chinese piano manufacturer to the world’s largest manufacturer of pianos.

The case starts out by mentioning the company’s gradual development as a result of the booming Chinese economy. Then it provides details about the initiatives undertaken by its illustrious CEO, Tong Zhi Cheng, to improve the quality of the pianos and make them appealing to a global market.

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Issues

The case is structured to achieve the following teaching objectives:

  • To comprehend the challenges faced by a brand from an emerging market in the global market
  • To identify the various methods of making a market entry into a mature market
  • To understand the importance of quality and price in providing unique competitive advantages
  • To recognize the means of increasing brand image

Keywords

Pianos, Emerging Markets, Brand Identity, Brand Management, China, Pear River, Ritmuller, Chinese Exports, Automation, Yamaha, Reforms,Joint Venture, Musical Instruments, Quality Certification, Price Competition

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