Steinway Case

Topics: Piano, Automation, Competitor analysis Pages: 2 (312 words) Published: June 19, 2013
1. What accounts for Steinway's reputation as a manufacturer of high-quality pianos? What tactical differences do you see between Steinway and Yamaha in their pursuit of high quality? Evaluate each

Steinway reputation was a result of the uniqueness and the differentiation in their products. Their long-standing history of perfection in making custom and hand made products, differentiate them from their competitors. Steinway strived to meet the specifications for their piano artists and utilized their fame to promote a high quality pianos. In the other hand, Yamaha leveraged technology in automating the manufacturing of their pianos, which gave them a leap over Steinway. They also had access to low cost labor in Japan, which enabled them to sell their products in a lower cost than Steinway.

2. How does Steinway's strategy compare with that of its major competitors?

Steinway strategy was to market their products by utilizing the famous pianist and ensure they receive the right specifications. In the other hand, Yamaha focused on introducing their products to the school and institutions at lower cost and maintained quality to sure future sales for their pianos.

3. Is the adoption of automated technology, like the new CNC shaping equipment, consistent with Steinway's quality strategy?

The adoption of the CNC shaping equipment’s is defiantly consistent with Steinway’s quality strategy because it ensures production of high quality products and high volumes comparing the handcrafts which produce less volume and prone for defects more than the CNC shaping equipment’s.

4. Consider Steinway's distribution strategy and the introduction of the Boston, Essec, and Heirloom lines. Are these new offerings consistent with Steinway's business and manufacturing strategy?

This is considered as a natural growth in their strategy and as a respond to the new competitors in the market. In order for Steinway to grow and compete, they needed to expand further...
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