Steinway & SonsBuying a Living Legend

Case Analysis

SWOT Analysis

Strengths

1.Superior Brand among theWorld Stage

2.Proven excellence in technology

(3. 90% of all

Classical musicConcert are performed

onSteinway Concert Grand

Thanks to Birminghams

& Bruce Stevens

4.Quality reassured

Weaknesses

1.Financials a Setback

2.Poor Management when Undertook by the CBS

1972-1985

•Shuffling of CEOs•Increased dealers whose primary product not being a Steinway

3. Lost it’s Name and ReputationIn 1985

Quality? Being Questioned

740 finished pianos LanguishedAs dealers were reluctant to buy

Opportunities

1.Growing Asian Markets

2.Improving

Economic Conditions

@

U.S & Europe

3.4.5% increase in sales of

Grand PianosFrom 1990-1994 in

USA

4.58% of total Steinway are sold in

U.S

Threats

1.Steinway itself

Used pianos

2.Growing Asian markets

35% world’s vertical piano sales80% world’s grand piano sales

3.Yamaha owning 35% of World market

Sold 17,500 grand pianos

1.Stainway Grand sold For every

6.4 Yamaha Grand

That is,at a particular timeYamaha is making $203,724

While Steinway is making $41,020

Clearly Yamaha is on the upperside

32.5% Drop in Grand piano sales From the years 1990-1994

Thanks to Mid priced Boston pianos,

Steinway is stable

41% of the total unit sales

Strategy and Justification

Continue it’s High-end nicheStrategy

If not, •it looses it’s reputation•It has no match with Asian(80%) piano makers on production

Continue the Boston Piano Production

With a “Designed by Steinway”tag

Embedded On each piano

In-order to increase revenues

Utilize the production capacityAt the Asian industries

Nobody says no to patch upWith the Steinways

Aggressive Strategy must be Formulated to

Attract Asian Markets

One Such Strategy might be

Increase the variety of bostonPianos with the

“Designed by Steinway” tag

Most Grands the Asian makersSoldWereSmall

Hence, introducing low priced

Small GrandsWith a Steinway Design

tagMight Increase it’s sales

revenue

Kirkland as the chairman of the board

Major Strategy DecisionsRegarding Asian markets

On the otherhand,

Messina, must look upon US and Europe markets

Messina must

Interact with Dealers

Messina must put efforts to

Carry on Traditional SteinwayImage

Conclusion

1.Continue it’s High end niche Strategy

2.Continue the Boston Pianos

3.Strategic decisions regardingTie up with Asians

Introducing Low Priced

Grands

4.Kirkland and Messina Must understand

New demand realities&

Act Upon it

Thank you -by

Aswanth VaratharajanPSG College Of Technology