Case Study - Pearl River Piano Company

History 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 …

…en masse. Individual piano keys are hand-checked for precision and balance. Five pairs of ears listen to each piano's tuning, speeding another instrument out the door--and into America's 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 by 2005. It already has won the hearts and minds of some U.S. consumers.