Galanz

660 WordsNov 30, 20123 Pages
Galanz This case talks about the development path of Galanz from a down product factory to the leader in microwave ovens industry. Galanz was founded in 1978 by Liang Zhaoxian's father, headquartered in Shunde, Guangdong province. It was originally a township enterprise employing a few workers dealing in the trading of down feather products, but after many years development, it was switched to the electrical appliance business with the introduction of microwave oven. Because of its right marketing strategy, it became leader in this industry. Question1: What were the order winner/order quantities for Galanz in the microwave ovens business during the early stage of its development? During the early stage, the order quantities of microwave…show more content…
Question3: What is the role technology has played in the success of Galanz? I think technology played a key factor in the success of Galanz. At the very beginning, Galanz’s most important components were all purchased from its rivals. When Galanz became the leader in the microwave ovens market, its rivals refused to supply the most important component magnetron to it. So it had to design its own magnetron. After its design in the magnetron, it enhanced in R&D capability and production innovation. This allowed the company ti reduce costs and provide differentiated features in its products. Meanwhile, the company started providing more ODM service to large OEM clients as well as receiving more orders for products with Galanz brand from small and mid-size enterprises in developing countries. Question4: What are Galanz’s competitive and operations strategies, and how does its operations strategy support its competitive strategy? Galanz’s competitive strategy was low cost, and its operation strategy was transfer of production line through OEM agreement. First tactic used by Galanz was to escalate its production capacity through a free production line transfer. Second tactic was to attract component suppliers setting up component production facilities in Galanz. Then Galanz fully utilized its production facilities and labor resources to the extreme by operating three shifts per day, seven days a week and 365 day a year. This allowed the

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