Steinway &Sons

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What are Steinway’s resources and capabilities? Are they strong? Strengthening? Weakening? How do you know?
Steinway and Sons has been recognized as the market leader for high-quality grand pianos. The firm had prospered due to its technical excellence and innovation (technology) in making these high quality pianos. The firm enjoyed valuable, rare and inimitable resources. It had two manufacturing facilities (infrastructure), one in Long Island City, NY and the other in Hamburg, Germany. The firm produced high-quality pianos using craft method rather than highly automated production lines (operations). This made the product inimitable producing legendary sound and a customizable piano to suit a musician. A musician always found the
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While Steinway’s resources and capabilities could not be easily replicated, competitors invested in automation and continuous improvement of the production process and substituted them. The other major competitor for Steinway was the Used Steinway market. A well maintained 20 year old Steinway was priced at 75% of the new one. This market posed a serious threat owing to the pianos durability.

Evaluate the competitive threats that Steinway faces from its competitors, especially Yamaha.
Baldwin: Baldwin posed a threat to Steinway as being the only other American piano manufacturer. They produced relatively inexpensive vertical and grand pianos that were respected by artists on highly automated production lines. ($122 million in 1994)
Kawai: Kawai was known for its good quality verticals and small grand pianos. It did not have high quality concert grand piano as yet. Again, their production process was highly automated.
Bosendorfer and Fazioli: Both these European companies took a low volume and high quality approach similar to Steinway and had earned immense reputation and sought after brands by classical and popular artists alike. These brands also enjoyed a worldwide marketability status.
Used piano market: Steinway believed that the used piano market was a serious threat to its new piano sales. It was estimated that for every new piano sold in the US, 10 used pianos also changed hands. In

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