What accounts for Steinways reputation as a manufacturer of high-quality pianos? Essay Example
What accounts for Steinways reputation as a manufacturer of high-quality pianos? Essay Example

What accounts for Steinways reputation as a manufacturer of high-quality pianos? Essay Example

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  • Pages: 3 (625 words)
  • Published: April 26, 2017
  • Type: Case Study
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The reasons for high quality product is caused traditionally over a time with the basic principles.

All Steinways were still assembled by craft methods with little use of assembly-line techniques. Volumes remained small. Skilled labor was employed throughout the process and many employees often continuing an association begun by their parents and grandparents and had been with the firm for 20 or 30 years.  Only the finest materials were used. Purchase of millions of dollars worth of wood annually, which includes rosewood from Brazil, mahogany from Africa and Sitka spruce from Alaska.

Besides research and development were also contributed for maintaining the high quality product. The R& D group and it collaborated with CBS Technology center on several other projects causes the high reputation as a manufacturer of high quality pianos. Still following the advice of its founder i.e


. build the best piano possible and sell it at the lowest price consistent with quality.

How Does Steinway’s strategy compare with that of its major competitors?The major competitors for Steinways are Yamaha, Kawai of leading Japanese piano makers and they success in the American market. The competitors sale of pianos are verticals. Hence Model K of Steinway is considered for reintroduction to face threats by the competitors. The Model K also changed to vertically.

Should Steinway introduce the Mode K vertical piano? Why or why not?Yes the Model K with vertical shaped piano should be introduced since the competitors like Yamaha, Kawai and captured American market and their pianos are vertical shaped. Hence Model K Vertical piano should be introduced.What other advice would you give Peter Perez as a strategic business unit (SBU) manager convening?His responsibilities ‘downstairs’ to

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Steinway?Since the Steinway’s R& D group had already invested $200,000 in working up the Model K. The Bill Steinway had personally devoted nearly two years to the project to get the result.

Still the President is under doubt to introduce the Model K. It is advised that there is no other alternative except to introduce the Model K. It is nothing but reintroduction with another shape i.e. vertical. And in order to attack the competitors it is inevitable.

The introduction is already late and the company image may be curtailed and the growth of business of the Steinway & Sons may be limited.  If the introduction Model K is not existed, then it will be responsibility to Peter Perez, which indicated downstairs to Steinway.His responsibilities ‘upstairs’ to CBS?Mr. Peter M.

Perez who is president of Steinway & Sons of piano makers plays vital role for the development of Steinway. While introduction of the new item, he spares more time and analyses in all angles even he may go for dilemma for such thinking. Thinking and thinking, the issue minimized and get options of results for which he can choose. But he is thinking that it is the old model, which was introduced in 1920. He is in such thinking that reintroduction of Model K is correct or not.

It is advised that it is not accepted during 1920, but now it may be acceptable and statistics shows that competitors are selling such vertical shape pianos. Hence Model K can be introduced. CBS appointed Peter Perez as an executive only since he has experience in the music industry. During 1977 he joined the CBS Musical instruments division

as an executive vice president for long range planning and business development. Owing to his outstanding performance over planning he became resident of Steinway. He used to spend time by touring in the factory, chatting with employees and taking notes and responding to what he saw.

It indicates and dedication and involvement of the work in CBS. Hence Mr. Peter Perez contributed towards Peter Perez.

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