Case of Steinway & Sons: Buying a Legend In the case of Steinway & Sons‚ two investment bankers‚ Dana Messina and Kyle Kirkland are faced with the question of how to build on the business. Steinway & Sons was established in 1853 in New York City‚ by Henry Engelhard Steinway‚ a German immigrant who became well known for his technical excellence in piano production. It is a 140 year old company‚ and has been recognized as a leader in the market for high quality grand pianos. The primary problem
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The Selmer Company‚ new owners of Steinway & Sons‚ must decide whether or not Steinway should continue to focus on its high-end‚ niche strategy of being the preeminent maker of high quality vertical and grand pianos or do a 360 and take on a bold and aggressive approach. For several years now‚ Steinway’s brand and reputation had suffered due the popularity of electronic keyboards‚ expansion of their dealer network and some modernization methods to the manufacturing of the product. As a result‚ poor
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Wang Hanzi Steinway & Sons: Buying a Legend 8th Nov. 2011 1) Historically‚ why has Steinway been successful? • For 140 years‚ Steinway & Son has been recognized as a leader in the market for high-quality grand pianos. In 1854‚ it introduced the cross-stringing technique in a piano with a cast-iron frame‚ an innovation that is now universal in all grand pianos. Based on these technical advances‚ order grew rapidly. • Steinway also emphasis on brand visibility by opening the Steinway Hall in 1866
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as a manufacturer of High Quality Piano’s? Ans 1: Steinway has a reputation for creating high quality products. The company’s products score very high on 5 dimensions of quality‚ Performance‚ Reliability‚ Durability‚ Aesthetics and Perceived quality. The factors behind the high quality products of Steinway are 1) Steinway maintained a good relationship with artists‚ and had a list of approved artists who were eligible for Steinway Concert service under which the company provided pianos
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Revised January 21‚ 1997 Steinway & Sons (A) A Steinway is a Steinway. . . . There is no such thing as a “better” Steinway. Each and every Steinway is the best Steinway. Theodore Steinway The 1990s was a period of change for the music industry. Foreign competition in the mid-price upright piano market was intense. In addition to well-entrenched players from Japan (Yamaha and Kawai)‚ two South Korean firms (Young Chang and Samick)‚ were emerging as competitors. Moreover‚ Yamaha and Young Chang
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competitors like Yamaha‚ Kawai. 3 Why does Steinway & Sons feel threatened by the Japanese competitors who are practically in a different market in terms of price‚ reputation‚ and available models? ² Japanese competitors like Yamaha‚ Kawai has sold pianos in the United States since 1960 and remains the preferred brand for top jazz and pop artists. But in the late 1980s‚ Yamaha chose to enter the concert piano market in direct competition with Steinway. Developing grand pianos which are comparable
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BUS4006W Module: Change Consulting Assignment 1 – To be handed in on 13 May 2014. Please read Application 5-1 (STEINWAY’S STRATEGIC ORIENTATION). The CEO of Steinway & Sons has contacted you. He invited you for an initial conversation to see if you would be able to assist him with the challenges he is currently facing in the organisation. You had an hour meeting with him. During this time he elaborated on the following: The fact that he is really passionate about the work that
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started up a beverage company to sell apple juice. After 20 years’ development‚ the annual sales of this company were growing from $4 million (1984) to $674 million (1994)‚ increasing 168 folds. “Snapple” became a well-known beverage brand. Through analysis of Snapple’s marketing mix‚ we can peek at the reasons why Snapple can achieve such successes 1) Product. Snapple’s major product is a bottled apple drink which emphasizes 100% nature. It is easy for us to understand such apple juice met many
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DECISION ON HAND In 1992‚ Steinway & Sons introduced the Boston Piano. The Birmingham brothers felt branding the product with a name other than Steinway will help retain the high end of the market while providing a lower priced piano for those who were not actually ready to commit to a Steinway. See Exhibit 1 for a brief yet rich history of Steinway & Sons. Steinway & Sons are reluctant however‚ to introduce a new‚ mid-priced piano. The decision at hand is whether or not Steinway should extend its brand
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Mary Dradshaw Steinway Two investment bankers Dana Messina and Kyle Kirkland purchased Steinway and Sons‚ a New York piano manufacturer company for $100 million. It is their task to decide whether Steinway should continue it’s high-end‚ niche strategy of premium pianos‚ or to expand their current line of pianos to further grow their revenue. As Dana and Kyle step further into turning Steinway and Sons to a successful profitable business‚ they are faced with several existing issues that first
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