Steinway And Sons

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Steinway & Sons: Analysis Table of Contents Table of Contents 2 Introduction 3 Internal Factor Evaluation (IFE Matrix) 4 External Factor Evaluation (EFE Matrix) 5 Porter’s Five Forces 6 Competitive Profile Matrix 8 Porters Generic Strategies 10 Financial Analysis 12 Competition 15 The Marketing Mix-The 5 P's 16 Key Issues 17 Boston Consulting Group (BCG Matrix) 20 GE / McKinsey Matrix 21 Space Matrix 23 IE Matrix 25 Grand Strategy Matrix 26 TOWS Matrix 27 QSPM Matrix 28 Strategy 29 Recommendations 30 Conclusion 31 Introduction For almost a century, the piano market was dominated by a single family owned company. Steinway and Sons having been producing some of the finest musical equipment for over 100 years, however, in recent years they lost their position as leader in the piano market. After numerous owners and presidents, the company was sold in 1995 for $100 million. What is surprising in this story is not the sales price, but who bought this household name company, not a competitor, not a huge corporation, or even people in the music world, it was bought by two investment bankers in their early 30s Steinway and the word piano are almost synonymous. Working a long-term and still going- technical and market strategy that emphasized quality is to say, since the first Steinway family members arrived in New York from Germany in the middle of the 19th century, the company has pursued a strategy of making high end quality product, selling them through its own sumptuous outlets and through a network of dealers, and gaining exposure by encouraging premier performing artists to use the pianos. In the early 1970s, Steinway encountered competition from low cost producers based on in Japan. While Steinway’s fine image and reputation was unquestioned, the business wasn’t particularly profitable. In addition

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