Steinways: going to China

Extraits

[...] Moreover, from the 1980s, Steinway tried to enter in music schools and institutions like conservatories. This presence is also a research of value creation to the extent that they generally adopt the best instruments. Moreover, the best future pianists could indirectly continue to promote the brand using a Steinway. ( Advertising and perception The firm also created value through media advertising. It used for that persuasive ads. The company's objective was to persuade consumers that Steinway is the only “artistic” piano. [...]

[...] Each of the Steinway sons concentrated on gaining expertise in a different aspect of piano manufacturing. The first piano produced by the company, number 483, was sold to an American family for $500. Over the next forty years, they developed the modern piano, based on emerging scientific research, including the acoustical theories of physicists. There are two fundamentals in understanding the origins of the Steinway legacy: technical innovation and marketing. Around 1800 the piano's identity was still in a formative stage, but by the 1850's, the instrument basic structure had been defined. [...]

[...] The first price products of Steinways are attacked by the most expensive products of the competitors. This presents a threat in term of the quality and the image given by Steinways. SWOT Analysis Strengths Excellent reputation in term of brand name and quality Specific segment: people able to buy luxurious pianos and institutions Already implanted in Hong-Kong and Shanghai Conservation of the process of manufacture. Weaknesses The prices are high Cheaper pianos attacked by the most expensive products of the competitors. [...]

[...] Today, the Steinway pianos are priced the highest in the industry. Buying a Steinway is depicted as an indication of appreciation for high cultural taste, a sign of achievement. The firm convinced the public that a Steinway was the only “artistic” piano. A luxury for investment. Honours and rewards Steinway's revolutionary designs and superior workmanship began receiving national recognition almost immediately. Starting in 1855, Steinway pianos received gold medals at several U.S and European exhibitions for excellence in manufacturing and engineering. [...]

[...] And the eventuality to build a plant in Asia is evoked. The cost reductions that are offered by the assembly of the products and the fact to organise the importation of components from Europe or USA constitute good arguments to try a strong penetration of the Asian market. The final arguments are the tremendous reputation of quality and name of Steinways products and its compatibility with Asian mentalities of perfection and delicateness. Conclusion A firm as Steinway with such a tremendous reputation and name, with one of the most convicting quality policy for its products, created constituted during the 19th century, is always able to be offensive on the international market. [...]