Pearl River Piano Company Essay

bone River Piano Group (PRPG) was established in 1956 by bringing together six small easygoing shops in Guangzhou. The grouping of 100 employees produced only 13 gentlys that year. After many attempts, Guangzhou technicians were finally satisfy with the t angiotensin converting enzyme color and quality of its first manufactured piano, and in a short time it was sold in Hong Kong. It would be twenty long time before the milling machinery was able to prove its potential. As a order -owned enterprise PRPG is accountable to the Guangzhou municipal govern workforcet. Investments from both Yamaha and Steinway & Sons produce 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 healthy as a busy port and the capital city of the state of Guandong . The city has an area of over 16,000 square kilometers and a population of 6.7 one million million. Guangzhou is overly one of the most important centers of foreign commerce in second china.There are a lot of interesting legends concerning its past. One of the dishy 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 create 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 Zedongs Cultural diversity in the 1960s and 1970s, few Chinese dared to buy a piano, which symbolized the western hemispheres decadent and bourgeois society. Learning the piano was frowned upon at that time. The manufacturing limit didnt stop making pianos. However, they were lucky if they sold more than one hundred pianos a year. In the meantime Chinas one-child indemnity has created a c ulture where parents invest heavily in their childrens education. Parents same(p) to spend money to improve their childrens education and culture and this has gainful off for PRPG.Nearly 80%of their pianos are sold in China. Pianos stool caught on in China. PRPGs domestic shipments climbed even throughout Asias financial crisis. During the1960s companies such as Yamaha took advantage of low apprehend costs to enter the global and domestic market. They were quietly followed my South Korea. For years the musical instrument business was dominated by U.S. and European companies. notwithstanding this has been changing now for decades. In 1992 Tong Zhi Cheng took control of the company. He had worked for only one company during his adult life, the state-owned PRPG. When Tong took over pianos were fairly common in households in Europe and the U.S. for nearly two centuries, but in China they have been a luxury. In 1995 PRPG and Yamaha Pianos of Japan forged a $10 million joint venture . They sort out up a company called Yamaha-Pearl River. This company was set up to make certain Eterna models that are exported to Europe and the USA.Unlike Chinas typically backward state-owned companies, PRPG is savvy about brands and looks for new products to sell. Tong bought a mature German brand Ritmller in 1999. In addition he has struck a deal with Steinway & Sons to produce their Essex line of pianos. Today, PRPG consists of a factory spanning 2 million square feetthe worlds biggest piano plantcranks out 250 pianos every day. White-smocked workers steer computer-driven kilns that bake oak planks en masse. respective(prenominal) piano keys are hand-checked for precision and balance. Five pairs of ears listen to each pianos tuning, speeding another instrument out the doorand into the Statess living rooms. Just two years after Pearl River set up a U.S. sales arm, its high- quality, low-priced pianos have snared 10% of the market, and the company vows to capture a 25% share b y 2005. It already has won the hearts and minds of some U.S. consumers.