Steinway faced questions about whether to continue its niche strategy of high-end pianos or pursue a bolder plan. It considered introducing a mid-priced line. The document discusses Steinway's competitors including Baldwin, Yamaha, Kawai, and others. It notes Steinway's strengths in brand name and quality but weaknesses in costs and reduced dealer network. The document recommends Steinway continue its brand, expand to new markets like Asia, and introduce new product lines.

7. QUESTIONS FACING MESSINA
AND KIRKLAND
• Whether Steinway would continue its high-end, niche strategy of
being the world’s pre-eminent maker of high quality vertical and
grand pianos?
• Might it make more sense to forego this long-standing strategy
to pursue some bolder, more aggressive plan?
• Does it make sense for Steinway to sell a mid-priced line of
vertical and grand pianos?

8. TYPES OF PIANOS

9. TYPES OF PIANOS

18. 1.Baldwin
oHigh-quality grand pianos
o In 1994-sold about 20,000 pianos-generating
revenues of $122 million
o Has a network of 700 dealers
o Respected by trained musicians

19. 2.-Yamaha
o100-year old Corporation
o $1.0 billion in piano sales
o 35% share of the world market
o 50% share of the Japanese market

21. Unit Sales of piano producers in
1994
a. Baldwin- 20,000 pianos
b. Yamaha- 175,000 pianos
c. Kawai-100,000 pianos
d. Bosendorfer-400 grand pianos
e. Fazioli-60 grand pianos

23. Strengths:
I. Brand name
II. Highest Quality
III. Traditional handcraft production techniques

24. Weakness
I. too much cost is consuming( half of Lumber is
being discarded)
II. The dealer network is reduced during Birmingham
III. Lack of diversity

25. Financial capabilities
i. Owners has changed many times
ii. Running in loss for two consecutive years 1992 &
1993
iii. Seasonal downturn in demand

27.  Continue Boston piano by maintaining its
brand name
 Expand into new Markets like Asia
 Bring new products into the market like
Steinway Limited Editions, The Crown
Jewel Collection etc……..

28. These slides were created by Kouts Kumar as part of an
internship done under the guidance of Prof. Sameer Mathur
(www.IIMInternship.com)"