Galanz Case Study

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Operations Strategy at Galanz


Operations Management


The aim of this case study is to analyze the operation strategy of Galanz and asses the potential growth opportunities for Galanz in the future in a global environment. Galanz Gorup based in China was established in 1978 to offer microwave oven, air conditioners and other household appliances (Galanz, 2011).

It is a multinational company operating in more than 100 countries and regions in the world resulting in a well-known brand by being the largest professional microwave producer (Galanz, 2011). As a result they are expanding rapidly with a growth rate more than 100% each year and thus increasing their
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The delivery demand was met after increasing the production by starting a 24/7 production and increasing the supply of microwaves by keeping large inventories. This worked effectively in the earlier years for the Chinese domestic market, which required a low cost standardized product. Over the years, especially in the overseas market, Galanz experienced the changing preferences of customers and was required to customize their production according to the low volume and high variety product demand. The inventory was decreased in order to avoid suffering from a shortage of the demand of the product the customers wanted or unsold inventory for other products.

Service is a very important part of a company’s value chain and Galanz became much more aware of this part over the years. In the past Galanz was only operating OEM and did not have any contact with the end user / customer because the OEM clients handled them for Galanz. Galanz’s entrance in the ODM and OBM lead to more direct contact with the end user of the products which resulted in training of the employees and focus on workers technical skills, management skills, work attitudes and efficiency. Furthermore the expansion to overseas markets required a competitive level of service pool because of the diverse needs and
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