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?

TYPES OF PIANOS

TYPES OF PIANOS

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

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

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

Strengths:

I. Brand name

II. Highest Quality

III. Traditional handcraft production techniques

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

Financial capabilities

i. Owners has changed many times

ii. Running in loss for two consecutive years 1992 &

1993

iii. Seasonal downturn in demand

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……..

These slides were created by Kouts Kumar as part of an

internship done under the guidance of Prof. Sameer Mathur

(www.IIMInternship.com)"