Research Paper on:
Steinway Case Study

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way in which this took place there is a strong link between the use of the strategy and the way management was taking place and final management to allow the  investment to maintain the advantage also had to be in place . Steinway pianos are differentiated in terms of the quality of the product, but they have also developed  the method of piano manufacture, parts of which is patented and still remains a corporate secret. The product was one that met the needs of an industry that was still  in the growth stages, the management sought to find ways of satisfying the needs of the new romantic composers who were demanding more variety of tone and volume from  the instruments. The piano they developed was able to provide this is a way other older piano makers were unable to satisfy. Michael Porter has considered the way in  which firms compete, and defined two types of competitive advantage. These are cost advantage and differentiation. These are two different ways a competitor may get the edge on its rivals.  In trying to undertake a cost advantage the company may seek to be the cost leader in either the industry, or just the relevant segment of the industry.  Differentiation is described by Porter as "when it [the company] provides something unique that is valuable to buyers beyond simply offering a low price"  (Porter, 1985; 120). This means that the products different in some way, this may be real value through features and extras, perceived value, such as brand value (Grant, 2004). It  may also be an advantage that is added though the value chain rather than directly in the product (Thompson, 2005). The differentiation strategy will usually involve choosing either one,