Problems:

There was no extant synergy between Steinway & sons and the Selmer Company
Poor management when undertook by the CBS 1972-1985 i.e. shuffling of CEOs,
Increased dealers whose primary product not being a steinway.
Lost its name and reputation in 1985 as quality being questioned
Analysis
Steinway was the leading producer of Grand and Vertical piano
Strength:
For 140 years, steinway had reputation of building best piano in the world
Brand Name
Highest Quality
Tradiional handcraft production techniques
Should open a new and potentially large markets capturing the Asian market as it
seems Japan, South Korea and China represented huge opportunities
Weakness
Tooo much cost is consuming (half of lumber is being discarded)
the dealer network is reduced during Birmingham
Lack of diversity
Financial Capabilities
Owners has changed many times due to this product quality has been a problem.
Dealers and workers were losing faith in Steinway & Sons. As running in loss for two
consecutive years 1992 & 1993. There was a seasonal downturn in demand (unit
sales of other piano producers were high) due to rise of computer as entertainment
device and increased popularity of low budget electronic keyboards.
Baldwin produces high-quality grand pianos and respected by trained musicians and
also has a network of 700 dealers and Yamaha being 100-year old corporation, bear
35% share of the world market and 50% share of the Japanese market which
became threats for them. However, In 1994, steinway had a sale of $100m in an
year.
Conclusion and Recomendation

Continue its high-end niche strategy by making High Quality pianos as the economic
conditions of U.S & Europe is improving and
Expand into new Markets like Asia and market more aggressively as the Asian
markets is growing and most of the Asian makers sold small grand piano. Hence
introducing low priced small grands with a steinway design tags might help to
increase its sales revenue.
Bring new products into the market
Continue the Boston Piano by maintaining its brand name in order to increase
revenues