Steinway Strategic Orientation

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Steinway Strategic Orientation

The main changes in the environment and the Steinway organization since 2002 still involve the economy. Steinway doesn’t operate like a typical organization. The culture of Steinway’s brand is based on tradition and quality of craftsmanship. When many companies were discounting items to entice consumers in a bad economy, Steinway stood by the price of their pianos and their name (Miller, 2010) Steinway never discounts, according to financial writer Nancy Miller, “That's part of the pianos' prestige”. Steinway even laid off one third of their production staff in a New York City adjacent factory (Miller, 2010). Miller also states, Inventory control is only part of Steinway's pricing power. Steinway still has many hurdles to overcome before they are profitable to a point which makes stockholders pleased. Other changes that has occurred since the diagnosis in 2002 is sales. According to financial writer Nancy Miller, in the third quarter of 2010, sales of Steinway’s grand pianos jumped 11%. These sales increases were just in the market in the US. The European market didn’t see any significant improvements. While this was great news for the company, in 2011 shares in Steinway declined by 10%, even though their cost cutting was paying off in revenue (Reuters. 2012. December, 27). “Steinway has struggled to keep its production margins competitive amid stagnant sales” (Reuters. 2012. December, 27). Just when Steinway thinks they are overcoming economic impacts sales or stocks dip. The company even began humoring offers to sell the company and/or the band instruments division (Reuters. 2012. December, 27). This sparked the company to investigate various options. Currently Steinway is only underway in selling a leasehold on their famous Steinway Hall in

Steinway Strategic Orientation

New York City (Reuters.…...

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