PRPG was a state-owned organization and was created form a classic piano stock in Guangzhou of Cina. The piano factory is found Pearl Lake, so that the manufacturer of piano is called Pearl River. Since the adoption of an open-door policy, Chinaexploited a number of new opportunities provided by a market-oriented overall economy for expanding production, employments, and profits through free transact markets. As a result, PRPG face a chance due to import technology and export products, and then they were spent to become Pearl River piano Industrial Organization. Their business turn into more successful ，
after they merger with several small company. In2000, PRPG got more than 140 strategic connections through-outs the country, in addition to 208 revenue units.
Drawing on industry- resource- and institution-based views, clarify how PRPG, from its humble root base, 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 definitely traditional Euro musical instrument, Western pianoshas a good history, and in addition they always focus on upper marketplace, such as Steinway. PRPG is going to face a strong challenge when they target upper market. For example, althoughYAMAHA is the largest keyboard producers, that they focus on method and low-end market; however , Tong want their PRPG become finest brand, following only to Steinway. Inaddition, PRPG not only importance technology of piano producing, but as well learn andintroduce western tradition to them. Higher the entry obstacles, PRPG encounter the tough entre in US market; the united states peopledo not really believe PRPG can make reduced price high quality goods. PRPG cannot easily focus on foreign persons. US people stay loyal to their local product. The bargaining benefits of buyers may result in certain overseas market records. In USmarket, there are many rivals, such as Steinway. Steinway item always concentrate on upper marketplace. Buyers may buy Steinway product, rather than PRPG.
1 ) 2 Resource-based view�
in 1960-1980, our factory had suprisingly low productivities, lowcompetitive ability, actually less than 90 labors and produce just 13 pianos per year. The industry launched total quality of administration in 1988, and promoteISO 9000 in 1998. Moreover, they built business partnership with PHAZER via joint venture. As a result, PRPG learned higher technology skill via business activities. PRPG not merely import technology of keyboard making, nevertheless also master and introducewestern culture to them. New tong/tanga pay attention to communicate with their personnel in order to build good" GUANXI”. Tong as well established close relationship with a famous community well-know piano players, and recommended that they play their Pearl Riv piano in their concerts. This can be ‘celebrity's appeal' strategy to be able to target people. Innovation included the echange of new technology in creation and quality measurement and production development. Production advancement can be determined developing a a comprehensive portfolio of pianos in order to meet the upper-, medium- and low-end marketin order to goal different customers' group.
1 . 3 Institution-based view�
Regulatory risksThese dangers are connected with unfavorable government policies. Considering that the adoptionof a great open-door coverage, PRPG is allowed import high technology and export their products. Like a WTO member, the government's has been pushing local industrial sectors to learn from other foreign associates. Currency risk China is becoming an export powerhouse, which caused the friction with other countries, Usa in particular. The U. H. senators recommending the Whitehouse toexert pressure to China and tiawan for RMB revaluation lately and Leader Obama gavean official assertion to point out RMB should be liked. China's immediate responseto RMB rate issue can be found in Leading Wen JiaBao's answer in the pressconference just after the NPC& CPCC* in may in Beijing. Premier Wen claimedRMB can be not...