Steinway Strategic Organization

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Steinway Strategic Organization

By | October 2012
Page 1 of 4
Dwiyani Rahmawati Marvin Mahadharma Aldira G. Meyer Tenny Oktarina

Company Overview
The finest piano maker in the world
1853 – founded by the Steinway family 1995 – bought by Messina & Kirkland 1996 – become public company Piano is division of Steinway Musical Instruments Company


Upright piano

Grand Piano

Market share over 80%

Brand as most valuable assets
2% of all keyboard unit sales in US profit 35%

Minto Pyramid Analysis
• Financial performance below industry averages • Craftspeople are coverted by competitor & set up own store



• Increasing sales • Keeping craftspeople

DIAGNOSING: - external environment - industry structure - technology used - measurement system - HR system


Model for Diagnosing Systems at Organizational Level
Inputs Design Components Outputs

General Environmen t
Organization Effectiveness



Industry Structure

HR Systems

Measurement Systems

Does strategic orientation fit with Inputs? Strategy – Environment Fitness

Do components align with each other? Components Alignment

External Environment Analysis
Steinway’s external environment is only moderately uncertain and not very complex. Political Legal Different regulations and requirement in each country of manufacturing & sales distribution Economic downturn in 2002, overall industry sales should also drop Closely monitoring countries’ political condition Need to exercise caution in overall activities Should be sensitive to the latest trend



Trends in music and display are constantly changing
Breakthrough in design, materials, and construction technology Current product requirement is considered wasteful by enviromentalist

Technological Environmental

Choose to use classics method of production process

Industry Structure
Steinway’s industry is moderately competitive. Threat of entry...

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