Galanz Case. Operations Management Analysis

2311 Words10 Pages
Assessment 1 galanz paper: Operations management

September 19, 2011

TABLE OF CONTENT

ORDER QUALIFYING FACTORS 4

ORDER WINNING FACTORS 4

PRIORITISED VOB & VOC OF GALANZ: 5

THE ROLE OF TECHNOLOGY 6

COMPETITIVE AND OPERATION STRATEGIES 6

DIFFERENCES BETWEEN OEM/ODM AND OBM 7

GALANZ’S STRATEGY OF INTRODUCING OBM IN INTERNATIONAL MARKET 8

SUGGESTIONS FOR MR. LIANG TO LEAD THE COMPANY TO GREAT SUCCESS 9

ORDER QUALIFYING FACTORS

✓ Familiarity with Chinese market

In 1991, Liang Senior analysed the Chinese consumer market for a year and sensed that the rapid growth of the
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But still they relied on OEM strategy in order to increase their revenue. By 2003, Galanz’s primary exports were OEM microwave ovens, which had no brand recognition. The globalization was causing fierce competition among MNC’s which pushed Galanz into new markets and branded products. Few years later, Galanz recognized that their products were acknowledged for low cost and good quality where the OBM strategy was started to be brought in with the help of overseas R&D centres. Furthermore they started expanding their own OBM sales by cutting down OEM orders.

THE ROLE OF TECHNOLOGY

Galanz was successful because of its low price strategy this was possible because it acquired the production lines from other companies. Galanz increased production (product quality and production scale) through a free production line transfer, assembly technology , part customization, production site improvement, training for Galanz’s operators and staff (from Fillony, Toshiba, Sanyo, Whirlpool, GE, SEB, DeLonghi) and used the excess capacity to produce microwaves under its brand name for the domestic market. When companies like Toshiba and Panasonic refused to offer enough magnetrons to Galanz, Galanz decided to invest in R&D to create their own design for the

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