To: Mr. Messina & Mr. Kirkland
Steinway & Sons Obtain by Selmer
Congratulations Mister. Messina & Mr. Kirkland on the latest purchase of Steinway & Kids, a pre-eminent maker of top quality vertical and grand pianos. There are several options and paths available for the newly formed Steinway Musical Instruments, Inc. We certainly have evaluated these types of opportunities because of the market, competition, plus the assets of the company and believe that the near future outlook for your operations appears good. You should read even more for each of our analysis and recommendations. В
The Piano industry is facing this major developments:
1 . Continual downturn in the marketplace which is bringing about lower revenue 2 . Loan consolidation of keyboard manufacturing sectors
3. Opening of new and potentially huge markets.
4. Emergence of Asian suppliers
Let us take a look at each of these in turn. The sustained downturn inside the piano sector can be related to various factors such as the rise of electric pianos, computers as entertainment devices, and even the economic recession of modern times. However , this trend could be easily turned if non users and other market sections are targeted. В
The consolidation of piano manufacturing companies has been confident as it lowered the number of competitors in the industry. At this point, we are able to target more on the smaller number of existing opponents and are in a position to form each of our marketing strategies appropriately. Additionally , the opening of new markets in Asia symbolizes huge options for Steinway. This is a market where there can be lots of place to grow, and it can help reverse the downturn inside the piano sector. В
Finally, the beginning of Cookware manufacturers has changed the composition of the market. The competition is definitely fierce and the product is of comparable quality. This portion represents a fantastic challenge, but they also represent a great target for all of us. We can target our attempts on removing market share coming from these competition and elevating our sales. В
Whilst a few of these trends seem to suggest a decline, the industry is still in the maturity level. There are a few competitors and expansion has slowed down, but we have a new marketplace in Asia that is totally new. There may be lots of area to expand number of company users simply by converting non-users, entering new market sections, and winning competitors' buyers. To better format our approach, let us look into the competition. В
The main element competitors for Steinway & Sons pianos are Phazer, Baldwin, Kawai, Bosendorfer and Fazioli. Phazer is a Japan manufacturer that currently holds 35% in the market share throughout the world and about 50 percent market share in Japan. The corporation is dedicated to quality through continuous improvements. This manufacturer creates a serious menace to Steinway with its related quality and artist support program. Yamaha has been powerful in getting a lot of artists to endorse Yamaha's pianos. Kawai is another Western manufacturer who competes inside the same space as Steinway. However , Kawai still has operate to reach the same level of quality while Steinway. In contrast to Steinway, both Yamaha and Kawai mass-produced their pianos by using very automated, assembly-line techniques with decent selling price and quality.
Baldwin is definitely the only other American company and offers a complete set of pianos. They will compete with Steinway in the live concert grand pianos space in which they are widely recognized.
Lastly, we certainly have Bosendorfer and Fazioli manufacturers who will be of the same quality and reliability as Steinway. However , the 2 are low volume producers and do not be competitive on the volume level with Steinway. We would determine from our examination that Yamaha is most significant threat of such competitors. Phazer has already established itself as a pressure to be recokened with and Steinway should never disregard Yamaha's potential. В
Steinway & Sons
The success of Steinway & Sons for over 140 years and its place as the pre-eminent producer...