Galanz Case Study

Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.

1. What were the order winners/order qualifiers for Galanz in the microwave oven business during the early stage of its development?

Service management combines the required services with organizational solutions and thus new generation user service becomes simplified. These forthcoming services are necessitated to be interrelated and combined in order to meet the demand of socio- economic factors such as environment analysis, safety measurement, climate management, agriculture modernization

This course focuses on services management in general and service operations in particular. It explores the elements that unite services, that differentiate service processes from non-service processes and that differentiate various types of services from each other. Customers generally participate in the service process, often with direct and uncensored interactions with employees and facilities. The resulting

Being the largest microwave manufacturer in the world, with strong commitment to R&D, expertise in manufacturing, logistics and quality control, and increased brand recognition in the overseas market Galanz has gained the competitive advantages for OBM export business. Galanz’s need continue to increase investments in innovation and branding in order to sustain the competitive advantage in the global markets and ensure that incremental gains are made to ensure profitability

products, have attracted a lot of customers throughout the world. The company has a huge

Initially as a market entrant, Galanz focused on a low cost strategy to gain leverage in the domestic market. This strategy was supported by an abundance of cheap land and labor. The expensive microwaves produced by players like Toshiba and LG were unaffordable for majority of the Chinese population and hence, Galanz became popular right from its inception. The rapidly increasing demand, which rose to almost 25 million units in 2003, for these low-cost microwaves prompted Galanz to expand its production capabilities. Galanz, facing shortage in production, decided to outsource magnetron production to Japan for the production deficit that it faced. Furthermore, deals with customers like Fillony to transfer entire production lines made sure that the ever growing demand for the ovens was met successfully. The perennial working shifts for the production team ensured that production scale and costs of Galanz was unmatched anywhere in the entire market.

Tangible goods, or rather manufactured goods, have been the dominant medium of exchange for centuries. However, recent decades have proved that it is no longer the case as there has been a prevalence of being service oriented (Vargo and Lusch, 2004:1-2). Services, as defined by Vargo and Lusch (2004), are  “the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself (p.2).” Utilizing services gives businesses an edge, a competitive advantage, particularly in an evolving competitive market, something which Metalfrio is definitely part of (Vargo and Lusch, 2004:9).  Those businesses that learn to adapt tend to do well. In addition, Vargo and Lusch (2004) write this shift to services is also a shift from producer perspective to a customer perspective (p.2). Thus, it leads to more of a collaborative effort where co-creation leads to adding value to the service rather than a product having value (Vargo and Lusch, 2004:6). Also, customers rather develop relationships with those that can provide a range of related services over an extended period of time, thus allowing businesses retain their clients for the long term (Vargo and Lusch, 2004:13). Overall, service oriented marketing is a direction that businesses should be headed towards to ensure that they can remain relevant and competitive in the

Service firms are increasingly using customer service to develop sustainable competitive advantage – through value generation as well as differentiation. This

2. The difference is that for service company they must provide customer satisfaction and for a manufacturing company they must provide product satisfaction. To achieve global success a service company must have a good communication with their customers by having well trained employees. The element is having excellent customer service. An obstable to global expansion is the high

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

We will discuss them one by one in detail. When we talk about the product, they sell a wide range of electronics from computers to household appliances, so we cannot specify one product of a kind. They maintain a separate store just for the luxury home appliances. Apart from selling goods they also provide insurance for the items at good rate. They have their brand image maintained very well.

Today most Multi National Companies that are operating globally are realizing that they have to take complete control of After-Sales-Service, in order to compete effectively and synergize their operations with profitability. Earlier days, much of the service operations were handled by third parties. Companies have identified that after-salesservice is a significant source of revenue for the organization. With this paradigm shift and change in the culture, Rolls Royce pioneered and conceptualized ‘Power by the Hour’, an after-sales-service program that helps focus customer in their core business

This report talks about the successful strategies adopted by GE that was accountable for its success. It will start by answering the question the importance of studying GE recent globalization strategies and practices, and then, by giving a quick background of the company globalization process evolution. After that, the report will demonstrate a close analysis to 4 main strategies of the company. Finally a conclusion will be given based upon the current challenges and future perspective.

The company’s brand recognition is visible globally. It also possesses strong capital resources and has exhibited positive results to its shareholders in the past.