The second concern is the alignment of the design components. With respect to
strategy, the individual elements of Steinway’s strategy are mostly aligned. Steinway
clearly intends to differentiate its product by serving the high-end segment with unique
high-quality pianos. But a broad product line (both uprights and grands as well as two
brand names) could dilute the focus. The market for higher-priced and more specialized
concert grands is much smaller than the market for moderately priced uprights
and limits the growth potential of sales unless Steinway wants to compete vigorously
in the emerging Asian markets where the Asian companies have a proximity advantage.
That hypothesis is supported by the lack of clear goals in general and policies
that support neither growth nor profitability. However, there appears to be a good fit
between strategy and the other design components. The differentiated strategic intent
requires technologies, structures, and systems that focus on creating sophisticated and
unique products, specialized marketing and distribution, and the concert bank program.
The flexible structure, formal inspection systems, and responsive culture would
seem well suited for that purpose.