The following questions are important in assessing Steinway’s strategic orientation:
1.What is the company’s strategy? Steinway’s primary strategy is a sophisticated
niche and differentiation strategy. They attempt to meet their financial and other
objectives by offering a unique and high-quality product to sophisticated artists.
However, its product line does blur the strategy’s focus. With both Boston and
Steinway brands and both upright and grand models, a question about Steinway’s
commitment to the niche strategy could be raised. No formal mission or goals are
mentioned in the case and this makes it somewhat difficult to judge the effectiveness
of the strategy. But it seems reasonable to assume a clear intent to maintain its
dominance in the high-end segment. However, with new owners in 1995, it is also
reasonable to question whether goals of profitability or revenue growth, implying
very different tactics, have been sorted out.