Pearl River Piano Essay

2283 Words Oct 31st, 2012 10 Pages

PRPG was a state-owned enterprise and was developed form an old piano factory in Guangzhou of China. The piano factory is located Pearl River, so that the brand of piano is called Pearl River. Since the adoption of an open-door policy, Chinaexploited a range of new opportunities provided by a market-oriented economy for expanding production, employments, and profits through free trade markets. As a result, PRPG face a chance due to import technology and export products, and then they were expended to become Pearl River piano Industrial Corporation. Their business become more successful

after they merger with several small company. In2000, PRPG had more than 130 strategic alliance through-outs the country, in addition
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China is a country with a huge exporting activities, recently it is changing itsexporting mode which from low-wage and low-labor-cost advantage towards high-tech, high-value-added exports. Pearl River Piano Group, a state-owned company inChina, had been stimulated from a slow-moving Chinese firm founded in the 1956 toa booming global company with growing sales in domestic market and internationalmarket. While it has a good performance in the low-end product segment in the

international market, there was an issue about whether Pearl River Piano could be awell-known global brand by ascending to the mid-high product segment, and whether it could achieve sustained growth by building a reputable and high-quality brandname in the world.
2.1 Direct exports
Direct exports represent the most basic mode of entry, which capitalizes oneconomized of scale in production concentrated in the home country and affords better control over distribution. However, if the products involved are bulky.This strategy essentially treats foreign demand as an extension of domestic demand,and the firm is geared toward designing and producing for the domestic market firstand foremost. While direct exports may work if the export volume is small, it is notoptimal when the firm has a large number of foreign buyers.
2.2 Dissatisfied of the Pearl River piano

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