Piano Industry, Prp

Porter Five Forces The soft manufacturing. Threat of musical accompaniment products or services LOW A portable keyboard can be regarded as a substitute but those interested in buy a piano ar interested in superior sound, part performance, good looks and elegance. The keyboard has none of these. It is complicated to sell a piano and head for the hills it in order to put a keyboard. Threat of new argument MEDIUM-LOW The capital investment in a piano factory is genuinely high. The market already is filled with competitors that dominate the global market. Brand designation is also a hard asset to aquire in the piano industry.Pianos are a luxury product that could make an entrant suffer a lot in the even of an economic downturn. Other local Chinese piano manufacturers could potentially become significant competition. Bargaining military unit of customers broad(prenominal) A piano is a high end product with many an(prenominal) different brand offerings. Customers have a large bargaining power driving the margins down. PRP has made this clear by driving prices down by offering a good product at a collapse price. Bargaining power of suppliers LOW The suppliers hold no proprietary materials that the piano makers require.Most of the materials are commodity products much(prenominal) as wood and those that are more developed like keys are becoming easier to manufacture in ho mapping due to the drop in ease and cost of the machinery requisite to do so. Intensity of warlike rivalry HIGH The entrance of companies such as PRP is evidence of the incredibly competitive market the piano industry is. New drastic tactics and strategies like sponsored players that can only use their products in their performances or manufacturing outside their usual territories into asian sites also shows the competitive nature of the business.