steinway and sons:buying a living legend case analysis
TRANSCRIPT
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Steinway & SonsBuying a Living Legend
Case Analysis
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SWOT Analysis
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Strengths
1.Superior Brand among theWorld Stage
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2.Proven excellence in technology
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(3. 90% of all
Classical musicConcert are performed
onSteinway Concert Grand
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Thanks to Birminghams
& Bruce Stevens
4.Quality reassured
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Weaknesses
1.Financials a Setback
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2.Poor Management when Undertook by the CBS
1972-1985
•Shuffling of CEOs•Increased dealers whose primary product not being a Steinway
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3. Lost it’s Name and ReputationIn 1985
Quality? Being Questioned
740 finished pianos LanguishedAs dealers were reluctant to buy
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Opportunities
1.Growing Asian Markets
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2.Improving
Economic Conditions
@
U.S & Europe
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3.4.5% increase in sales of
Grand PianosFrom 1990-1994 in
USA
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4.58% of total Steinway are sold in
U.S
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Threats
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1.Steinway itself
Used pianos
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2.Growing Asian markets
35% world’s vertical piano sales80% world’s grand piano sales
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3.Yamaha owning 35% of World market
Sold 17,500 grand pianos
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1.Stainway Grand sold For every
6.4 Yamaha Grand
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That is,at a particular timeYamaha is making $203,724
While Steinway is making $41,020
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Clearly Yamaha is on the upperside
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32.5% Drop in Grand piano sales From the years 1990-1994
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Thanks to Mid priced Boston pianos,
Steinway is stable
41% of the total unit sales
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Strategy and Justification
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Continue it’s High-end nicheStrategy
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If not, •it looses it’s reputation•It has no match with Asian(80%) piano makers on production
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Continue the Boston Piano Production
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With a “Designed by Steinway”tag
Embedded On each piano
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In-order to increase revenues
Utilize the production capacityAt the Asian industries
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Nobody says no to patch upWith the Steinways
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Aggressive Strategy must be Formulated to
Attract Asian Markets
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One Such Strategy might be
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Increase the variety of bostonPianos with the
“Designed by Steinway” tag
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Most Grands the Asian makersSoldWereSmall
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Hence, introducing low priced
Small GrandsWith a Steinway Design
tagMight Increase it’s sales
revenue
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Kirkland as the chairman of the board
Major Strategy DecisionsRegarding Asian markets
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On the otherhand,
Messina, must look upon US and Europe markets
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Messina must
Interact with Dealers
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Messina must put efforts to
Carry on Traditional SteinwayImage
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Conclusion
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1.Continue it’s High end niche Strategy
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2.Continue the Boston Pianos
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3.Strategic decisions regardingTie up with Asians
Introducing Low Priced
Grands
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4.Kirkland and Messina Must understand
New demand realities&
Act Upon it
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Thank you -by
Aswanth VaratharajanPSG College Of Technology