Steinway and Sons
Revised January 21, 1997
Steinway & Sons (A)
A Steinway is a Steinway. . . . There is no such thing as a “better” Steinway. Each and every Steinway is the best Steinway. Theodore Steinway
The 1990s was a period of change for the music industry. Foreign competition in the mid-price upright piano market was intense. In addition to well-entrenched players from Japan (Yamaha and Kawai), two South Korean firms (Young Chang and Samick), were emerging as competitors. Moreover, Yamaha and Young Chang had already established a presence in China. Forecasts indicated that the future growth market for pianos will be concentrated in Asia. This case discusses Steinway & Sons’ history, the evolution of its value system, and the current market conditions facing the firm. It highlights the issues faced by Steinway & Sons as its top management formulates its strategy toward the growing Chinese piano market. COMPANY BACKGROUND The Steinway Family Years — 1853 to 1971 Steinway & Sons was founded in 1853 by Henry E. Steinway, Sr. and his sons, Henry Jr., Charles, and William. In 1854 the firm entered and won its first competition. A year later it won first prize at the American Institute Fair in New York. By 1860 Steinway & Sons built a manufacturing facility at 52nd Street and Fourth (now Park) Avenue, on the site now occupied by the the Seagrams Building. Here 350 men produced 30 square pianos and five grands per week. In 1864 the firm opened a showroom on 14th Street. In 1865 sales topped $1,000,000. From the beginning, piano building at Steinway & Sons was a family affair. Each of the Steinway sons concentrated on gaining expertise in a different aspect of piano manufacturing: William was a "bellyman" who installed the piano soundboards, Henry, Jr. focused on piano "finishing," and Charles concentrated on “voicing” the piano. By 1854 the Steinways were employers, and the family members had become managers. Henry Sr. was in charge overall, while Henry Jr. focused on research
Steinway & Sons (A)
A Steinway is a Steinway. . . . There is no such thing as a “better” Steinway. Each and every Steinway is the best Steinway. Theodore Steinway
The 1990s was a period of change for the music industry. Foreign competition in the mid-price upright piano market was intense. In addition to well-entrenched players from Japan (Yamaha and Kawai), two South Korean firms (Young Chang and Samick), were emerging as competitors. Moreover, Yamaha and Young Chang had already established a presence in China. Forecasts indicated that the future growth market for pianos will be concentrated in Asia. This case discusses Steinway & Sons’ history, the evolution of its value system, and the current market conditions facing the firm. It highlights the issues faced by Steinway & Sons as its top management formulates its strategy toward the growing Chinese piano market. COMPANY BACKGROUND The Steinway Family Years — 1853 to 1971 Steinway & Sons was founded in 1853 by Henry E. Steinway, Sr. and his sons, Henry Jr., Charles, and William. In 1854 the firm entered and won its first competition. A year later it won first prize at the American Institute Fair in New York. By 1860 Steinway & Sons built a manufacturing facility at 52nd Street and Fourth (now Park) Avenue, on the site now occupied by the the Seagrams Building. Here 350 men produced 30 square pianos and five grands per week. In 1864 the firm opened a showroom on 14th Street. In 1865 sales topped $1,000,000. From the beginning, piano building at Steinway & Sons was a family affair. Each of the Steinway sons concentrated on gaining expertise in a different aspect of piano manufacturing: William was a "bellyman" who installed the piano soundboards, Henry, Jr. focused on piano "finishing," and Charles concentrated on “voicing” the piano. By 1854 the Steinways were employers, and the family members had become managers. Henry Sr. was in charge overall, while Henry Jr. focused on research