1.What accounts for Steinways reputation as a manufacturer of HighQuality Pianos?
2.Clearly explain the factors (like Cost , Quality ,Raw material procurementstrategy
etc at least 7 factors) that differentiates different types ofSteinway products ?
3.Which are Order winners and Order Qualifiers ?
4.How does Steinways strategy compare with that of its major
5.Explain Volume Variety Matrix and steinwayss different types of Productsand the
people, process of manufacturing and Technology
6.Should Steinway introduce the Model K VERTICAL Piano? Why or WhyNot?
7.What other advice would you give Peter Perez as a Strategic BusinessUnit(SBU)
Manager concerning :
8.His responsibilities “downstairs” to Steinway” ?
9.His responsibilities “upstairs” to CBS ?
Steinway &Sons
Keval Baxi 306
Aniruddh Chakravorty 307
Prateek Chaurasia 308
Aakash Chharia 309
Bhavya Dedhia 310
10/8/2012
Introduction:
Steinway & Sons is a century old piano manufacturer that specializes in grand pianos. The
company dominates the US grand piano market with 25% market share. However it has
not established itself in the upright piano market which is a large volume segment. As a
result it earns only 11% of the total piano sales revenues. The company is planning to
introduce Model K piano, a 50 inch upright piano in the market to improve its market
share. However due to its craft style production, it is not able to match its competitors in
both volume and price.
1. What accounts for Steinways reputation as a manufacturer of HighQuality Pianos?
Ans:
Quality: Steinway is reputed for high quality products, largely because of its technical
excellence. The company is based on the belief “build the best piano possible. Sell it at the
lowest price consistent with quality.”
Relationship with artists: The firm also went to great lengths to accommodate musicians
for whom pianos were specially adjusted and tuned to suit the individuals temperament
and style. In return for these services, Steinway was granted exclusive use of participating
artists names for publicity purposes.
Social responsibility: The development of Steinway village in long island, which was a
self-contained company town with all the facilities.
Highly skilled labor: The labor employed was often continuing association begun by their
parents and grandparents, which had been with firm for 20-30 years and helped the firm to
maintain the tradition.
Raw Material: Steinway relied on its own technologist who confined to the
finest materials for e.g. rosewood from Brazil, mahogany from Africa.
Intelligent Synthesis:
Use of Urea Resin Synthetics to hold Steinways together.
Use of plastic keys instead of Ivory
Experimentation with electronic actions
Durability: The most serious competition the company faced came in the market from used
