Galanz

804 WordsJun 8, 20134 Pages
Assignment Form | |Homework: |Case Write-Up: Galanz | STUDENT DECLARATION I declare that this assignment is my own work, which all sources of reference are acknowledged in full and it has not been submitted for any other course. Signature:…………………… Date:………… Case Write-Up: Galanz Case Briefing This case shares with us about the story of Galanz Enterprises Group Co. Ltd. (Galanz) had transformed itself from a manufacturer of down feather products into a world class manufacturer of microwave ovens…show more content…
1) To effectively expand the production capacity, Galanz escalated the production capacity through a free production line transfer from foreign OEM partners. The same tactic was applied to attract component suppliers setting up component facilities in Galanz. To further increase its production capacity, Galanz fully utilized its production facilities and labor resources to extreme by operating 3 shifts per day, seven days a week and 365 days a year. 2) Repeatedly implementing cycles of price cutting and production capacity expansion. Since Galanz enjoyed tremendous economies of scale for low cost production, the company pushes its sales team to work hard so that the market could absorb the additional inventory. 3) In an additional effort to reduce cost, Galanz started to vertically integrate its supply chain by manufacturing more of its components. About 90% of the microwave oven parts were produced by Galanz. 5. What are the differences between OEM/ODM versus OBM in terms of production, design, marketing, distribution and customer service? | |OEM/ODM |OBM | |Production |Increasing demands of customized products decline |Standardized products increase the production | |

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