Pearl River Piano
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 to 208 sales units.
Question1
Drawing on industry- resource- and institution-based views, explain how PRPG,from its humble roots, managed to become China’s largest and the world’s second largest piano producer.
1.1 Industry-based view 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 will face 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 easily target 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 target upper market. Buyers
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 to 208 sales units.
Question1
Drawing on industry- resource- and institution-based views, explain how PRPG,from its humble roots, managed to become China’s largest and the world’s second largest piano producer.
1.1 Industry-based view 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 will face 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 easily target 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 target upper market. Buyers