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Steinway & Sons: Buying a Legend (A) Case Solution & Answer

We are in 1995, Steinway & Sons has been we purchased two young entrepreneurs. For 140 years, Steinway has maintained the reputation of the best quality pianos in the world. The last 25 years have proved to be a challenge, however. First, the company has changed hands several times and product quality has become a concern. Second, the global market for pianos has been declining steadily, and the pianos of high level competition increased. Finally, in 1992, Steinway took the questionable actions of the introduction of a line of mid-range pianos under the “Boston”. Designed by Steinway but manufactured by a Japanese manufacturer of pianos, the Boston line represents a major change in business strategy. In this context, what two young entrepreneurs (with little or no experience in the piano industry) hope to achieve in buying Steinway? In particular, what is its value to the company and decisions should he do?
by
John T. Gourville
Joseph B. Lassiter
Source: HBS Premier Case Collection
23 pages.
Release Date: October 8, 1999. Prod #: 500028-PDF-ENG
Steinway & Sons: Buying a Legend solution (A) Case

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