Steinway & Sons: Buying a Legend
¢ñ. Statement of Problems and Issues
Summary
For 140 years, Steinway & Sons has set the standard for the quality manufacture of pianos. Why is Steinway legend? What made it so a great master? After first step into piano industry ¡°Steinway¡± and the word piano are almost synonymous. Working a long-term ¨C 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 to it, due to some stockholders who were unwilling to invest but mainly interested in income, Steinway¡¯s financial conditions became worse, so the family company came to an end, was sold to CBS. CBS recognized that the business didn¡¯t fit its corporate strategy. In 1985, CBS sold the company to John and Robert Birmingham, Boston-based investors. Under Birmingham, Steinway returned to its former stature, stressing quality and focusing on the high-end market. But ten years later, Steinway is also sold two investors, Kyle Kirkland and Dana Messina because of financial problems.
Problems and Issues
Now, the two young entrepreneurs have some questions and need to decide something important. Whether Steinway would continue its high-end quality piano or alternatively, pursue some bolder, more aggressive plan? Also they should decide what to do with the recently introduced line of Boston pianos. Did it make sense for Steinway to sell mid-priced pianos and how can they leverage the Steinway brand name to further enhance revenues? Finally, what role should they play in the running of Steinway?
We will mainly focus our analysis on the market share, financial problem and brand strategy. Now we start our analysis to choose the right creative to solve dilemmas which Kyle Kirkland and Dana Messina are facing.
¢ò. Analysis of Current Situation
1. External analysis: Market & competitor, Consumer behavior
Description
Market Industry Trends1. Sustaining downturn in the piano industry (global sales dropping by 40% since 1980)2. Consolidation of the piano manufacturing industries in US & EU3. Emergence of several Asian manufacturersThe Used Piano Market1. The impact by an active market for used pianos is considerable2.
Karolina Swietoniowska, the young, youthful, educated and passionate owner of Korra dancewear has been in business, trying to live her dream of designing dancewear clothes for the past three years. Sales have been however very slow for her, given that she had other priorities to take care of, she is now looking to improve her position as a businessman and increase her scale of business and expand and grow. Capital and experience constraints have been pulling her down and she is struggling to make her mark on the market. There are other very strong competitors in the market, functioning with very different
The second part, “Why It Happened: Eighty-Five Years,” explains the origins of the firm and its founding and operating principles, and it sets the basics for why several deviations from these founding principles eventually led the firm astray.
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
The issue is whether RLK should exploit its brand equity as it is known for their innovation and the innovation capabilities. However, Lars need to understand that outsourcing is not the only option and he should consider more options and possibilities.
In this paper I will discuss the Wrigley Company and how it became one of the most recognized and largest branded companies in the world. When you think of Wrigley people tend to think of the gum products it is now for, as well as the commercials we all have grown to love over the years. Remember the double mint twins, what about, Juicy fruit, even big red- all are a part of the every expanding brand of Wrigley. One of the many achievements the company can tip its hat too is being able to say that it lead all gross product sales in the year of 2007. This is a major accomplishment considering that the US is one of the largest consumers on the planet- so the competition is fierce. But overall its leadership and management have given the come the wherewithal to withstand to new challenges the company has faced over the decades.
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are made through Disney’s corporate strategies and enabled them to reach long-term success. One will discuss Disney’s long-run success through a general approach. Eisner’s turnaround of the company and his specific implications/strategies will be examined in detail in part II. Disney could reach long-run success mainly through the creation of value due to diversification and the management and fostering of creativity, brand image and synergies between businesses (1, p.11-14).
This case examines issues of asset control for Ben & Jerry’s Homemade, Inc., in light of the outstanding takeover offers by Chartwell Investments, Dreyer‘s Grand, Unilever, and Meadowbrook Lane Capital in January 2000.
Also this report will firstly will highlight how Ralph Lauren brand has achieved this complete resonance with its consumers through the all four steps of Keller’s CBBE model in (apex figure1) since its creation. Then, underline the Points of Parity (POP) and Points of Difference (POD) of the Brand to finally recommend ways through which the brand can continue to be successful in future.
To fully appreciate the evolution of Columbia from “a corporation that was a niche manufacturer of outdoor clothing aimed at fishermen…into an international brand and publicly traded powerhouse,” (1) one must understand the level of perseverance, work ethic, dedication, and attitude of one Gertrude Boyle: now 87, but still “One Bad Mother.” (Exhibit1) Gert Boyle took over the family business in the 1970s after the sudden death of her husband. A candid and straight person, Boyle has often admitted that, having never worked a day in her life, she had no idea what to do when she first began running the company. (2) Despite her lack of experience, Boyle helped turn Columbia from a company near bankruptcy and collapse into a billion dollar publicly traded organization. Along the way she relied on her natural business savvy and perseverance, overcoming trials such as family tragedy and even an attempted kidnapping.
For one of my selections for buying stock, I invested into Starbucks, this company has attracted me with their wonders of different coffees, and I knew many others were interested in the very popular coffee company. Starbucks all started 1971 in Seattle Washington. With three men which were Jerry Baldwin, Zev Siegel and Gordon Bowker each of them put in one thousand three hundred and fifty dollars along with a barrowed five thousand from the bank to start up there small coffee shop in pick place market, witch is located in down town Seattle. The name for this company was inspired from the character Starbuck from Moby Dick; this character was a coffee lover. There close friend designed there well known logo. These men never thought of this small company to get large they just thought of it as a small coffee shop. Out of all three men Siegel was the only one that work at it full time. The men depened on a man named Alfred Peet for there coffee beans but soon then started there own blends of coffee beans. With in a year opening the first store they were able to open a second store. When the 1980’s rolled around, it was a thriving company, in the Seattle area. However, the co-founders began to have other interests and were involved in other careers simultaneously. Despite that, the company was about to undergo a major turning point. A man by the name of Howard Schultz started to pursue an interest in the company. He noticed that the coffee shop had a wonderful environment. He started asking a questions and becoming more and more interested by every moment. He loved how the founders had so much knowledge on the coffee and each blend. In 1982, Schultz became director of retail operation. This was just the start to a new phase with the company.
Nithin Geereddy. 2013. Strategic Analysis of Starbucks Corporation. [ONLINE] Available at:http://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf. [Accessed 18 April 14]
One important subsystem of the Steinway includes “raw” specialized materials used to handcraft each one. Secondly, a key factor is the meticulous and varied skills of the craftsmen employed as part of this subsystem. Lastly, the lack of assembly-line machinery, is what makes a Steinway unique and sought worldwide.
This case provides a brief history of management conflict and change at Walt Disney Company. Former CEO Michael Eisner was considered to be controversial because of his abrasive style and tendencies toward micromanagement. It was this style that strained several important relationships to the Disney Company. Though his reign as CEO during the 80’s and 90’s helped advance Disney Company, it was his conflicting management style that led to his demise and the beginning of Robert Iger’s epoch at Disney. Since Iger has taken the helm as CEO Disney was ranked 67th in the Fortune 500 list for largest companies, it has become the largest media conglomerate in the world, and relationships and disputes stemming from Eisner have been reconciled.
Schultz, Howard, and Joanne Gordon. Onward: How Starbucks Fought for Its Life Without Losing Its Soul. New York: Rodale, 2011. N. pag. Print.
In order to ensure the success of a brand the company must put lots of planning and thought into the brands elements. The three brands I have chosen to examine in this branding exercise are Apple, Coca-Cola, and Target because they demonstrate many of the criteria used to evaluate brand success.