China's Pearl River Piano - Tuning into the Global Market
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Case Code: BSTR451 Case Length: 15 Pages Period: 1956 - 2014 Pub Date: 2014 Teaching Note: Not Available |
Price: Rs.400 Organization: Guangzhou Pearl River Piano Group Ltd. (PRGP) Industry: Musical Instruments, Pianos Countries: China, US, Germany, Global Themes: Business Strategy, Brand Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
In the 1890s, a few Germany-based piano manufacturers constructed factories in China to produce European pianos for the locals. In the 1950s, the Chinese government nationalized these factories that had still been producing pianos using German production methods.
In 1956, six small piano repair shops merged together to form 'Pearl River Piano Company' (PRPC) in Guangzhou, China. The combined entity was made a state-owned enterprise, accountable to the Guangzhou municipal government. Located in the northern region of the Pearl River delta, Guangzhou was an important trading center, key port, and capital city of the Guandong province.
The company primarily undertook repair and rebuilding work on pianos for a small market. The company's technicians then tried producing a piano. After they successfully developed a piano model which was purchased by a customer in Hong Kong, the company took up piano production in earnest. The pianos were sold under the brand 'Pearl River'.
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