Case Study - Pearl River Piano Company

Essay by glenn202University, Master'sA-, March 2006

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Pearl River Piano Group (PRPG) was established in 1956 by bringing together

six small piano shops in Guangzhou. The group of 100 employees produced

only 13 pianos that year. After many attempts, Guangzhou technicians were

finally satisfied with the tone color and quality of its first manufactured piano, and

in a short time it was sold in Hong Kong. It would be twenty years before the

factory was able to prove its potential.

As a State -owned enterprise PRPG is accountable to the Guangzhou municipal

government. Investments from both Yamaha and Steinway & Sons have played

a key role in the expansion of their production. In addition, PRPG has bought

the German piano brand Ritmuller and will be expanding in the European market.

Guangzhou, located at the north of the Pearl River delta, is an important trading

center as well as a busy port and the capital city of the province of Guandong .

The city has an area of over 16,000 square kilometers and a population of 6.7

million. Guangzhou is also one of the most important centers of foreign

commerce in South China. There are a lot of interesting legends concerning its

past. One of the beautiful stories which gives the city its name Goat Town says

that five gods riding on five goats brought the first grain to the city.

In 1959 PRPG consisted of a shed on the side of the street to repair pianos.

Later a shelter was built to process the wood. At that time the pianos were

carried in a cart with men walking barefoot to the port.

During the tumultuous of Mao Zedong's Cultural Revolution in the 1960's and

1970's, few Chinese dared to buy a piano, which symbolized the West's

decadent and bourgeois society. Learning the piano was frowned upon...