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Steinway &Sons

In: Business and Management

Submitted By asapharu
Words 1068
Pages 5
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 pianos that could be tuned to their personality and taste very valuable and even granted permission to use their names for publicity (sales & marketing). The labor force (human resource) was highly skilled and rare with each worker working at least 15 years. The manufacturing process (operations) for a grand piano took 2 years, which meant that the process was costly and difficult to imitate. The firm sourced (procurement/logistics) the best quality lumber from all over the world. Steinway had few focused dealers who were committed (service) to Steinway’s product line and leveraged the remaining dealers’ distribution network through partnership programs. (sales and marketing)
However, Steinway was constrained by limited financial resources. Making Steinway pianos was highly capital intensive. At any point in time there was $75 million sitting in inventory that affected its credit line and made it difficult to negotiate with the banks for even amounts such as $200,000.

Can Steinway’s resources and capabilities be easily replicated by competitors?
Over the years Steinway viewed only handful of manufacturers as their...

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