Operations Strategy at Galanz

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

Quality is one of most important factors for order qualifiers because it provided reliability for customers to use them. However, the low-price strategy was the order winner during the early stage of development of Galanz. To win orders, Galanz adopted a low-price strategy. Low product prices which can be afforded by domestic market triggered more demand. With this increased demand, Galanz achieved greater economies of scale, which helped to lower costs and prices further. In addition, it also attracted foreign manufacturers to transfer their production facilities to Galanz. With the cheap price of
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This contrasts with traditional Western operating hours of 40/week and allowed them to increase production scale and reduce production costs relative to many of their competitors. Finally they pursued vertical integration of the supply chain to reduce costs and improve quality, leading to 90% of Galanz 's microwave parts being produced by Galanz itself. Each of these operational strategies support the competitive cost leadership strategy by exploiting economies of scale to generate large-scale production and achieve low-cost efficiency.

5. What are the differences between OEM/ODM versus OBM in terms of production, design, marketing, distribution, and customer service?

Original equipment manufacturers produce a necessary component of another company’s product, often relying on economies of scale to drive down production costs. OEM’s typically don’t provide customer support, instead passing on those responsibilities to their client whom bought the original product. Original design equipment manufacturers on the other hand, produce a product that is eventually rebranded once purchased by another company and can be thought of as “outsourcing”. The main difference between the two is that OEM’s produce a product by their own specifications, while ODM’s produce products by another company’s specifications. ODM’s also aren’t in charge of final distribution, while OEM’s are. Another difference is that unlike OEM’s, ODM’s also

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